What the experts say

Four-legged strategy; Time to buy timber?; Personal loans are back

Four-legged strategy

It’s that time of year again to ponder the “Dogs of the Dow,” said Donna Kardos Yesalavich in The Wall Street Journal. The so-called dogs are the 10 components of the Dow Jones industrial average that over the previous year paid out the highest dividends relative to stock price. For the past two decades, buying and holding them for 12 months has been a popular strategy: It’s seen as a way to scoop up dividend-paying stocks while identifying laggards that should, in theory, do better in the year ahead. While the tactic “hasn’t always been fortuitous,” it did well in 2010, when the dogs had a total return of 21 percent, versus 14 percent overall for the Dow. So who’s in the dog house this year? Eight members of the pack are back, joined by new pups Johnson & Johnson and Intel Corp.

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