Dogs of the Dow

Today I officially funded my M1 account. I posted earlier that M1 Finance is a free investing platform where you create a portfolio as a pie. The pie allows you to own fractional shares of a stock which gives an easier point of entry to owning higher priced equities.

DoD 18

Initially I was playing with the idea of making a FANG pie, but I am really more interested in the magic of dividends and compound interest. As such I created my portfolio’s pie utilizing the investing strategy called Dogs of the Dow. The idea is to own the top ten dividend stocks of the 30 stocks that comprise of the Dow Jones Industrial Average. I used M1’s pie format to insert the ten stocks then weighted them each at 10%.

This, for me, will entail a buy and hold mentality. My goal is to have weekly deposits automatically invested in this portfolio for dollar cost averaging and higher dividend returns over time. I will rebalance as needed at the beginning of each year. For stocks that drop out of the strategy I will either hold them if I think they will still make me returns or sell them if they really are dogs.

Watch for updates on my M1 experience!

 

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