According to a recent study by Dow Theory Forecasts, an investment bulletin published since 1946, Barron reports that the Barber and Bear markets should perform better for investors. The study concludes that a portfolio of such stocks since the S & P 1500 has outperformed the general equity market since 1990 by an average of 1.3 percentage points per year.
The authors of Dow Theory Forecasts believe in the usefulness of Dow's theory, developed by Dow Jones & Co's co-founder Charles H. Dow, as a tool for analyzing and forecasting market trends. Their selection has surpassed the S & P 500 Index (SPX) since 2003, according to their website. (See also: The three major dividend stocks in 2017.)
Five tips
Barron columnist Mark Hulbert has identified the five top-performing stocks in the S & P 1500 and are also recommended by at least one of the best newsletters he follows. These are, along with their short-term dividend yields, P / E ratios and 52-week stock market movements, through December 6:
Washington Prime Group Inc. (WPG)
WPG
Washington Prime Group Inc
6:38
-3.04%
), a mall and mall REIT: Yield of 14.2%, 35.7 P / E, loss of 33%
Consolidated Communications Holdings Inc. (CNSL)
CNSL
Consolidated Communications Holdings Inc
12:41
-0.32%
), a broadband service provider: return of 12.3%, 38.4 P / E, loss of 54%
Seagate Technology PLC (STX)
STX
Seagate Technology PLC
54.44
-1.38%
), a manufacturer of data storage devices: 6.4% yield, 9.4 P / E, 3% loss
Hersha Hospitality Trust (HT
HT
Hersha Hospitality Trust
6:54 p.m.
-0.05%
), a REIT hotel: yield of 6.3%, -217.8 p / e, loss of 17%
Macy's Inc. (M
M
Macy's Inc
25.62
-1.27%
department store chain: 6.3% yield, 9.7 P / E, 42% loss
The above data comes from Thomson Reuters, as reported by Yahoo Finance. The S & P 500 gained 19% over this 52-week period.
Dividend breaks can occur
Over the years, many individual shares of the theoretical portfolio analyzed by Dow Theory Forecasts have lost money when their dividends were cut or eliminated, notes Hulbert. However, global payments of high dividends have been offset. Nevertheless, the most profitable stocks are often troubled companies such as General Electric Co. (GE
GE
General Electric Co
2.16
-0.93%
) recently who are ready for a cut. In fact, Dow Theory Forecasts stocks that earn at least 8% of its theoretical portfolio, increasing the likelihood of lower dividends, adds Hulbert.
Small universe
Only 24 stocks in the S & P 1500, according to FactSet Research Systems Inc. on Nov. 29, date from the Hulbert Chronicle, yielded over 8%. The average since 1994 was, according to the newspaper, only nine equal sources.
Source
The authors of Dow Theory Forecasts believe in the usefulness of Dow's theory, developed by Dow Jones & Co's co-founder Charles H. Dow, as a tool for analyzing and forecasting market trends. Their selection has surpassed the S & P 500 Index (SPX) since 2003, according to their website. (See also: The three major dividend stocks in 2017.)
Five tips
Barron columnist Mark Hulbert has identified the five top-performing stocks in the S & P 1500 and are also recommended by at least one of the best newsletters he follows. These are, along with their short-term dividend yields, P / E ratios and 52-week stock market movements, through December 6:
Washington Prime Group Inc. (WPG)
WPG
Washington Prime Group Inc
6:38
-3.04%
), a mall and mall REIT: Yield of 14.2%, 35.7 P / E, loss of 33%
Consolidated Communications Holdings Inc. (CNSL)
CNSL
Consolidated Communications Holdings Inc
12:41
-0.32%
), a broadband service provider: return of 12.3%, 38.4 P / E, loss of 54%
Seagate Technology PLC (STX)
STX
Seagate Technology PLC
54.44
-1.38%
), a manufacturer of data storage devices: 6.4% yield, 9.4 P / E, 3% loss
Hersha Hospitality Trust (HT
HT
Hersha Hospitality Trust
6:54 p.m.
-0.05%
), a REIT hotel: yield of 6.3%, -217.8 p / e, loss of 17%
Macy's Inc. (M
M
Macy's Inc
25.62
-1.27%
department store chain: 6.3% yield, 9.7 P / E, 42% loss
The above data comes from Thomson Reuters, as reported by Yahoo Finance. The S & P 500 gained 19% over this 52-week period.
Dividend breaks can occur
Over the years, many individual shares of the theoretical portfolio analyzed by Dow Theory Forecasts have lost money when their dividends were cut or eliminated, notes Hulbert. However, global payments of high dividends have been offset. Nevertheless, the most profitable stocks are often troubled companies such as General Electric Co. (GE
GE
General Electric Co
2.16
-0.93%
) recently who are ready for a cut. In fact, Dow Theory Forecasts stocks that earn at least 8% of its theoretical portfolio, increasing the likelihood of lower dividends, adds Hulbert.
Small universe
Only 24 stocks in the S & P 1500, according to FactSet Research Systems Inc. on Nov. 29, date from the Hulbert Chronicle, yielded over 8%. The average since 1994 was, according to the newspaper, only nine equal sources.
Source
