The Dogs of the Dow Jones Strategy is a popular investment rule or strategy which is used by many investors. The success rate is controversial. Some studies say that you can outperform by following this rule; others say you can't benefit from it.
The philosophy behind it is to buy 10 stocks of the Dow Jones with the highest dividend yield and lowest price to earnings ratio at the beginning of the year and to hold these stocks for a year. After this period, the investor should sell stocks that are no longer Dogs of the Dow and then buy new Dogs of the Dow.
Below is an updated sheet of the 10 best Dogs of the Dow. They have the lowest expected price to earnings ratio and highest dividend yield within the Dow Jones index.
Today you can find a full list of the cheapest stocks from the Dow Jones, also named as Dogs of the Dow Jones in the attached list.
In summary, the 10 cheapest stocks of the Dow Jones have an average dividend yield of 3.53 percent as well as a forward P/E ratio of 12.20. The average P/B ratio amounts to 2.67 and P/S ratio is 2.48.
Top 5 Cheapest Companies To Own For 2015: OCZ Technology Group Inc(OCZ)
OCZ Technology Group, Inc. designs, develops, manufactures, and distributes computer components for computing devices and systems worldwide. It primarily offers solid state drives, flash memory storage, memory modules, thermal management solutions, AC/DC switching power supply units, and computer gaming solutions. The company?s products are used in industrial equipment and computer systems; computer and computer gaming solutions; mission critical servers and high end workstations; personal computer (PC) upgrades to extend the useable life of existing PCs; high performance computing and scientific computing; video and music editing; home theatre PCs and digital home convergence products; and digital photography and digital image manipulation computers. OCZ Technology Group, Inc. offers its products to retailers, on-line retailers, original equipment manufacturers, systems integrators, and distributors. The company was founded in 2002 and is headquartered in San Jose, Califo rnia.
Advisors' Opinion:- [By Rich Duprey]
The not-so-great and wonderful OCZ
There was no company-specific news that caused solid-state-drive maker OCZ Technology (NASDAQ: OCZ ) to fall almost 8% Wednesday. But an article that appeared on Seeking Alpha �questioning whether the company had six months or less to live before it filed for bankruptcy seemed to coincide with its fall.
Top 5 Cheapest Companies To Own For 2015: SandRidge Permian Trust (PER)
SandRidge Permian Trust (the Trust) is a trust formed by SandRidge Energy, Inc. (SandRidge) to own royalty interests in 509 developed oil and natural gas wells located in Andrews County, Texas (the Producing Wells), and 888 oil and natural gas development wells to be drilled (the Development Wells) within an Area of Mutual Interest (AMI). The AMI consists of the Grayburg/San Andres formation in the Permian Basin in Andrews County, Texas. As of December 31, 2010, SandRidge held approximately 16,700 gross acres (15,900 net acres) in the AMI.The Underlying Properties consist of the working interest owned by SandRidge in the Permian Basin in Andrews County, Texas arising under leases and farmout agreements related to properties from which the PDP Royalty Interest and the Development Royalty Interest will be conveyed.
The royalty interest in the Producing Wells (PDP Royalty Interest) entitles the trust to receive 80% of the proceeds from the sale of production of oil, natural gas and natural gas liquids attributable to SandRidge's net revenue interest in the Producing Wells. The royalty interest in the Development Wells the (Development Royalty Interest) entitles the trust to receive 70% of the proceeds from the sale of oil, natural gas and natural gas liquids production attributable to SandRidge's net revenue interest in the Development Wells. As of March 31, 2011, after giving effect to the conveyance of the PDP Royalty Interest and the Development Royalty Interest to the trus, the total reserves estimated to be attributable to the trust were 21.8 million barrels of oil equivalent (MMBoe). This amount includes 5.8 MMBoe attributable to the PDP Royalty Interest and 16.0 MMBoe attributable to the Development Royalty Interest. The reserves consist of 96% liquids (87% oil and 9% natural gas liquids) and 4% natural gas.
SandRidge is an independent oil and natural gas company concentrating on development and production activities related to the exploitation of its significant holdings! in West Texas and the Mid-Continent area of Oklahoma and Kansas. SandRidge operates all of the Producing Wells. SandRidge owns a majority working interest in substantially all of the locations, on which it focuses to drill the Development Wells, and focuses to operate such wells. SandRidge Exploration and Production, LLC (SandRidge E&P) is a wholly owned subsidiary of SandRidge.
The Underlying Properties are located in the greater Fuhrman-Mascho field area, a region in Andrews County, Texas that primarily produces oil from the Grayburg/San Andres formation within the Permian Basin. SandRidge operates three drilling rigs within the AMI and, as of March 31, 2011, had drilled 101 wells. Within the AMI, SandRidge operates 509 wells and has 888 proven undeveloped locations as of March 31, 2011. These 888 proven locations are a combination of 5-acre, 10-acre and 20-acre infill spacing locations. As of March 31, 2011, average daily production from the Underlying Properties was approximately 3,400 barrel of oil equivalent per day (Boe/d).
Permian Basin
The Permian Basin extends throughout southwest Texas and southeast New Mexico over an area approximately 250 miles wide and 300 miles long. It is an oil producing basin in the United States. As of December 31, 2010, SandRidge operated approximately 2,600 gross producing wells in the Permian Basin, with an average working interest of 94%. In March 2011, SandRidge's average daily net production in the Permian Basin was approximately 29,600 Boe/d. SandRidge was operating 16 rigs in the basin as of March 31, 2011. SandRidge drilled 484 wells in this area during the year ended December 31, 2010.
Fuhrman-Mascho Field
The Fuhrman-Mascho field is located near the center of the Central Basin Platform in the Permian Basin. The field produces from the Grayburg/San Andres formation from average depths of approximately 4,000 to 5,000 feet. The Fuhrman-Mascho field is a producing field in the Permian Basin and! it has p! roduced approximately 142 MMBoe as of December 31, 2010. During 2010, SandRidge operated eight drilling rigs in the area and has drilled 307 wells as of March 31, 2011.
Advisors' Opinion:- [By Matt DiLallo]
The problem here is that SandRidge has been�dependent�on asset sales and its running out of assets to sell. In addition to the Permian sale, SandRidge has now taken three royalty trusts public. One consisting of Permian Basin assets, SandRidge Permian Trust (NYSE: PER ) and two consisting of Mississippian assets, SandRidge Mississippian Trust I (NYSE: SDT ) and SandRidge Mississippian Trust II (NYSE: SDR ) . While SandRidge still owns a portion of each trust, it likely will continue to sell off its ownership stake in each trust as well as other assets it still owns. At some point SandRidge will need to live within its oil and gas cash flows, otherwise, its not worth owning.�
Top 10 Low Price Companies To Invest In 2015: Mercury Computer Systems(MRCY)
Mercury Computer Systems, Inc. designs, manufactures, and markets high-performance embedded, real-time digital signal and image processing systems and software for specialized defense and commercial computing markets. The company operates in two segments, Advanced Computing Solutions (ACS) and Mercury Federal Systems (MFS). The ACS segment provides high-performance computing solutions, such as single board computers, digital signal processors, and integrated subsystems to the aerospace and defense, semiconductor, and commercial computing markets. This segment also provides microwave sub-assemblies to address needs in EW, SIGINT, ELINT, and high bandwidth communications subsystems; and software and customized design services for military and commercial applications. The MFS segment focuses on services and support work with the Department of Defense and federal intelligence and homeland security agencies, including designing and engineering intelligence, surveillance, and re connaissance (ISR) capabilities to address threats to the U.S. forces. It offers a range of engineering architecture and design services that enable clients to deploy computing capabilities for ISR systems on an accelerated time cycle. The company has operations in the United States, Europe, and the Asia Pacific. The company was founded in 1981 and is headquartered in Chelmsford, Massachusetts.
Advisors' Opinion:- [By CRWE]
Mercury Computer Systems, Inc. (Nasdaq:MRCY), a best-of-breed provider of commercially developed, open sensor and Big Data processing systems for critical commercial, defense and intelligence applications, reported it had received a $2.2M purchase order relating to an airborne radar application for fighter aircraft.
Top 5 Cheapest Companies To Own For 2015: Chesapeake Granite Wash Trust (CHKR)
Chesapeake Granite Wash Trust (the Trust) is a trust formed to own royalty interests for the benefit of Trust unitholders conveyed to the trust by Chesapeake Energy Corporation (Chesapeake). The royalty interests held by the Trust (Royalty Interests) are derived from Chesapeake�� interests in specified oil and natural gas properties located in the Colony Granite Wash play in Washita County in the Anadarko Basin of western Oklahoma. Chesapeake conveyed the Royalty Interests to the Trust from its interests in 69 existing horizontal wells (Producing Wells) and Chesapeake�� interests in 118 horizontal development wells (Development Wells) to be drilled on properties within the Area of Mutual Interest (AMI). The AMI is limited to only the Colony Granite Wash formation, where Chesapeake held approximately 45,400 gross acres (29,300 net acres) as of December 31, 2011. The Colony Granite Wash is located at the eastern end of a series of Des Moines-age granite wash fields that extend along the southern flank of the Anadarko Basin, approximately 60 miles into the Texas Panhandle. The Colony Granite Wash is a formation encountered at depths between approximately 11,500 feet and 13,000 feet that lies between the top of the Des Moines formation (or top of Colony Granite Wash A) and the top of the Prue formation (or base of Colony Granite Wash C). Colony Granite Wash is primarily a natural gas and natural gas condensate reservoir based on reserve volumes.
As of December 31, 2011, the all of the Producing Wells were completed, 66 Producing Wells were producing and approximately 11.5 Development Wells were completed and producing. As of December 31, 2011, the remaining three Producing Wells were temporarily offline. As of July 1, 2011, Chesapeake owned on average a 52.8% net revenue interest in the Producing Wells, and Trust received an average 47.5% net revenue interest in the Producing Wells, and Chesapeake on average owned a 52.0% net revenue interest in the Development Wells. As of March 15, 2012! , Chesapeake owned 61,100 net acres (of which 29,300 net acres are subject to the Royalty Interests). As of March 15, 2012, Chesapeake operated 95% of the Producing Wells and the completed Development Wells.
Advisors' Opinion:- [By Lawrence Meyers]
CYS seems to be approaching the business carefully and is on top of things. That makes me feel a little bit more secure about its 15% dividend yield.
Chesapeake Granite Wash Trust (CHKR)Dividend Yield: 24.4%
- [By Matt DiLallo]
Chesapeake Granite Wash Trust (NYSE: CHKR )
Created by Chesapeake Energy, the Granite Wash Trust owns royalty interests in 69 currently producing wells and 118 wells that are still to be drilled in Oklahoma in an area of mutual interest. The wells within the trust are producing out of the Granite Wash formation of the Anadarko Basin.�As you can see on the map below, the trust has a very focused area of interest.
Top 5 Cheapest Companies To Own For 2015: Spdr Dj Wilshire Small Cap Etf (SLY)
SPDR DJ Wilshire Small Cap ETF (the Fund), formerly streetTRACKS DJ Wilshire Small Cap ETF, seeks to replicate as closely as possible the total return of the Dow Jones Wilshire Small Cap Index (the Index). The Index is a float-adjusted market capitalization weighted index that reflects the shares of securities of the small-cap portion of the Dow Jones Wilshire 5000 Composite Index actually available to investors in the marketplace. The Index includes the components ranked 751 to 2,500 by full market capitalization. The Index consists of common stocks selected for their capitalization. The composition of the Index is reviewed semiannually in March and December. Shares and float factors of the Index are updated on a quarterly basis.
The Fund utilizes a passive or indexing approach and attempts to approximate the investment performance of its Index, by investing in a portfolio of stocks intended to replicate the Index. The Fund�� investment manager is SSgA Funds Management, Inc.
Advisors' Opinion:- [By Dan Caplinger]
Where the best gains are
The SPDR S&P 500 ETF (NYSEMKT: SPY ) weighs in with 20% gains with its exposure to 500 of the largest companies in the U.S. market. When you step down to mid-cap stocks, though, you'll get even better returns, with the SPDR S&P MidCap 400 ETF (NYSEMKT: MDY ) posting returns of 21% so far in 2013, based on the performance of 400 mid-sized companies domestically. The smallest companies in the market have done better still, as the SPDR S&P SmallCap 600 ETF (NYSEMKT: SLY ) has given investors impressive 24% returns since Jan. 1.
In fact, when you compare returns across stocks of various sizes, you'll get some surprising results:Why are smaller companies outperforming the largest stocks in the market? Historically, smaller stocks have posted better long-term returns than their larger counterparts, with theoreticians pointing to the greater risk involved in small-cap stocks as justifying the higher risk premium that investors should demand in order to hold them over the long run.
- [By Will Ashworth]
By the time the dust settled in 2013, small caps won the day (well, year) — the SPDR S&P SmallCap 600 (SLY) had outperformed the SPDR S&P 500 ETF (SPY) by almost 9 percentage points.
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