My personal twist on summer tech oriented Dogs of the Dow

Posted By on May 26, 2011

Has anyone back-tested Dog of the Dow technology stocks as a second half of the year purchase? Most of the technology upgrade cycles and business purchases happen during the second half of the year … and with CSCO (1.5% dividend yield) and  MSFT (2.6% dividend yield) at the bottom of the Dow 30, they certainly have under performed during the first part of 2011. Perhaps they make for an interesting summer dividend stock buying strategy? (ignoring BAC since its yield is only .40% and isn’t a tech stock)

MSFTchart110525
Microsoft indicates 5 up half years plus dividends in the 6 previous years.

CSCOchart110525
Cisco … not so good, new Dow stock and only a recent dividend stock.
CSCO has 3 down years and 2 up years – pretty “doggie.”

Here’s a $10,000 “paper trade” split between these two “dogs.” I’ll try to remember to check at the end of 2011 – perhaps it would have been best to buy mid-summer?

05/25/2011 BUY 300 shares CSCO @ $16.19 = $4857.00
05/25/2011 BUY 200 shares MSFT @ $24.19 = $4838.00
CASH = $ 305.00
——–
$10,000.00
Check back in December 2011

Current Dow Stocks for 2011 

  • Cisco, -12.1%

  • Bank of America, -8.0%

  • Microsoft, -8.0%

  • Hewlett Packard, -1.2%

  • Merck,2.0%

  • Procter & Gamble, 2.2%

  • Coke, 2.4%

  • Wal-Mart, 3.0%

  • McDonald’s, 3.8%

  • Verizon, 5.0%

  • Home Depot, 6.3%

  • Johnson & Johnson, 6.3%

  • JP Morgan Chase, 6.5%

  • AT&T, 7.9%

  • Kraft, 8.6%

  • Intel, 9.5%

  • 3M, 10.9%

  • General Electric, 11.0%

  • Dupont, 12.0%

  • Alcoa, 13.8%

  • Exxon, 14.0%

  • United Technologies, 14.0%

  • Chevron, 14.0%

  • Travelers. 14.6%

  • IBM, 16.0%

  • American Express, 16.9%

  • Walt Disney, 17.0%

  • Pfizer, 19.2%

  • Caterpillar, 20.5%

  • Boeing, 22.5%

  • Comments

    Desultory - des-uhl-tawr-ee, -tohr-ee

    1. lacking in consistency, constancy, or visible order, disconnected; fitful: desultory conversation.
    2. digressing from or unconnected with the main subject; random: a desultory remark.
    My Desultory Blog