Dogs of the TSX Update

As a subscriber to the 'Canadian Moneysaver' magazine I have access to an ongoing article series titled 'Beat The TSX'. It was started by David Stanley and now currently monitored and commented on by Ross Grant.

I use this as a guide to buy dividend paying stocks that I don't already own if I have the money. The stocks are focused on the top ten highest yielding that have finished lower in price from the year before. A committee is used for initial stock selection.

The list is modeled after the grandfather of this index, Michael O'Higgins who started the 'Dogs of the Dow'.

The stocks are purchased in equal dollar amounts and stocks are dropped from the list and replaced by new ones every year as they gain in price and value. Depending on what guru you follow different screens are used. I just wait for the new January/February issue to come out.

If you want to read more about the theory and methodology of Ross Grant, there is an interview contained in the book 'Market Masters'. He details his investing journey and how he became enamored to follow in the footsteps of David Stanley and takeover trying to beat the TSX.

This is a simple strategy and does come with risks and should be used as a guideline and not as a substitute for your entire portfolio. I use it as a stock picking tool and NOT for my entire holdings. I very rarely sell a stock unless it has cut the dividend.

It also DOES NOT beat the TSX every year just MOST years. I think it is a helpful index to help you grow your money. Let's see how the index is doing so far this year.

If you subscribe to the Globe and Mail there is another article by Norm Rothery about beating the TSX and divided yields.


It is well worth the money to have access to this insight.

Dogs of the TSX

as of February 2, 2018 this is where the list was published and these are the constituent 10 stocks and what the gains/losses have been.

Enbridge (ENB) 7.4%
Bell (BCE) 5.1%
Power Corp. (POW) 5.7%
Transcanada (TRP) 4.9%
Shaw (SJR.B) 1.6%
CIBC (CM) 3%
Bank of Nova Scotia (BNS) 2.7%
National Bank (NA) 3.6%
Bank of Montreal (BMO) 5.8%
Royal Bank (RY) .09%

This is a very bank heavy index as you can see. What else do you hold in you portfolio? What stocks would you buy today if you had new money to put to work. If I didn't own any BNS or BCE for income I would definitely be looking to add them here. They yield 4.2% and 5.5% respectively and have great 10 year dividend growth records.

What lists do you use to pick stocks?

I NEVER USE MY RETIREMENT MONEY TO TRADE IN AND OUT OF 

STOCKS!

Looking for Saving Ideas so You Can Invest? 

If you are looking at ways to save money this new book The Cashflow Cookbook can help you find some savings to then use to invest.

If you are having trouble getting your financial house in order and organized then you need to read Worry Free Money. 


If you are further looking for portfolio ideas then you might find my review of The 6-Pack Portfolio a way for you to get started on your investing journey. All of our retirement money is invested in this manner. We just hold more than 6 positions.

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