Dogs of the Dow

The Dogs of the Dow is an investment strategy devised by Michael O’Higgins in 2000, when he published Beating the Dow. The strategy has been both praised and criticized for its effectiveness to beat the market. The general idea behind the strategy is to invest in high-yield dividend stocks that have little risk. Mr. O’Higgins[…]

Growth Stock

Growth Stock

A growth stock is a stock that is increasing in value as opposed to providing a steady stream of income in the form of a dividend. Growth stocks tend to have a lower price-to-earnings ratio (P/E) and earnings per share (EPS); in some cases the P/E and EPS can be negative. This makes sense given[…]

Dividend Yield

Dividend Yield Investing

Investing in stocks that distribute dividends is a great way to take advantage of compound interest through a dividend yield. When a publicly traded company earns a profit, it can choose to distribute the profit to the shareholders of the company. Shareholders will receive a dividend if they purchased the stock by the ex-dividend date.[…]