A Simple Investment Strategy For Astute Professionals Who Want To Earn Steady Income

A Simple Investment Strategy For Astute Professionals Who Want To Earn Steady Income
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Jim Rohn strongly advocated for the importance of self-investment and personal development as essential to achieving success and fulfillment. He emphasized lifelong learning, stressing that while formal education can earn you a living, self-education has the potential to create a fortune. Jim championed the idea of working harder on oneself than on one’s job, highlighting self-improvement as a critical path to achieving one's goals and enhancing life quality.

Jim believed in the power of the surrounding social circle, famously stating that an individual's character is often a reflection of the company they keep. This belief underlined his view that surrounding oneself with inspiring and positive individuals is a crucial aspect of self-investment.

Additionally, Jim recognized the importance of financial wisdom, encouraging the saving and wise investment of earnings for financial security and independence. He also saw maintaining good health as foundational to success, advocating for regular exercise, a healthy diet, and positive habits.

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This article is a continuation of last week's and in honor of Movemeber & Mens' Mental Health Month. The purpose of this article is to promote awareness, education, and support for men dealing with various health issues, such as testicular and prostate cancers, depression, addiction, anxiety, PTSD, eating disorders, and suicide.

This article provides an opportunity to increase awareness of the importance of saving to invest, destigmatize talking about money, and develop a culture that values longterm investing, ultimately contributing to overall financial stability and smart wealth building habits. Investing can serve as a healthy coping mechanism for individuals who are eager to take charge of their financial situation and be the CEO of themselves.

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3 Keys to Success

The concept of health, wealth, and mindset as the three keys to success encompasses a holistic approach to achieving personal and professional fulfillment. Each of these elements plays a vital role in our journey towards success.

  1. Health: This key emphasizes the importance of physical and mental well-being. Good health is often seen as the foundation of a successful life. It involves maintaining a balanced diet, regular exercise, and adequate rest, as well as taking care of one's mental health through stress management and positive thinking. When you are healthy, you have the resilience, energy and vitality needed to pursue your goals and overcome challenges.
  2. Wealth: Wealth in this context goes beyond just financial riches. It encompasses financial stability and freedom, which are achieved through smart financial planning, saving, investing, and earning. Wealth provides the resources necessary to pursue opportunities, supports personal and professional growth, and offers a sense of security.
  3. Mindset: The mindset component is about the psychological and emotional aspects of success. It involves being bulletproof, cultivating a positive outlook, resilience, determination, and a growth mindset. This key is rooted in the belief that one's attitude and mental frameworks significantly influence their ability to achieve goals. It's about believing in oneself, being open to new experiences, and maintaining a lifelong commitment to learning and self-improvement.

Together, these three keys offer a comprehensive approach to success. They recognize that achieving one's goals and living a fulfilling life requires a balance of physical well-being, financial security, and a healthy, growth-oriented mindset. By focusing on each of these areas, individuals can build a strong foundation for sustained success and personal satisfaction.

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A Simple Investment Strategy For Astute Professionals Who Want To Earn Steady Income

The Dogs of the Dow, also known as, "Dog Power," is an investment strategy that offers a straightforward approach to stock market investing, particularly appealing to those who value simplicity and consistency. This strategy, is based on the principles of dividend income and value investing and revolves around the Dow Jones Industrial Average (ticker: DJIA), one of the most well-known stock indices comprising 30 major U.S. companies.

Annually, investors following this strategy select the ten companies within the DJIA that performed the worst the year prior and have the highest dividend yield. Dividend yield is a financial ratio that shows how much a company pays out in dividends each year relative to its stock price. The essence of this strategy is grounded in the belief that these high-dividend-yielding companies are likely undervalued in the stock market.

The Dogs of the Dow operates on the assumption that the companies in the Dow Jones are strong and stable enough to weather market fluctuations and that their high dividend yield is a sign of temporary undervaluation rather than fundamental financial issues. Therefore, by investing in these 'Dogs', investors anticipate not only a reliable income stream from the dividends, but also a potential for capital appreciation as the market corrects the undervaluation over time.

Implementing the Dogs of the Dow strategy is relatively simple. At the beginning of each year, you evaluate the 30 Dow stocks to identify the ten with the highest dividend yields, and allocate an equal amount of investment to each. This portfolio is held for the entire year, reducing the need for frequent trading or market monitoring. After a year, the portfolio is reassessed, and adjustments are made to include the new set of top ten high-yielding stocks for the next year.

One of the key attractions of this strategy is its focus on established, large-cap companies. The DJIA is known for its stable and well-established companies, which often means lower volatility and a degree of predictability compared to investing in smaller, less established stocks. Furthermore, the emphasis on dividend yield makes this strategy particularly appealing to income-focused investors seeking a steady income stream from their investments.

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Steps for Investing in The Dogs of The Dow From Your Phone

  1. Download an investment app and open a brokerage or retirement account.
  2. Fund your account.
  3. Familiarize yourself with the DJIA, which consists of 30 major U.S. companies.
  4. Identify the highest dividend yield stocks by visiting the Dogs of the Dow website at the beginning, or anytime of the year. The site is dedicated to this investment strategy. It is a great tool to become familiar with and use regularly. You can check the "current doggishness" in real time as the website above automatically sorts the list for you. 
  5. Invest Equally: Allocate an equal amount of money to each of these ten stocks. This ensures diversification within the chosen portfolio.
  6. Hold for a Year: Keep the stocks in your portfolio for the entire year. Avoid the temptation to trade frequently.
  7. Rebalance Annually: At the start of each new year, re-evaluate the DJIA. Adjust your portfolio to again include the ten stocks with the highest dividend yield at that time.
  8. Monitor and Manage: While this strategy doesn’t require frequent trading, it’s important to monitor your investments for any major news or changes in the companies you’ve invested in.
  9. Diversify: While the Dogs of the Dow is a strategy focused on blue-chip stocks, it’s important to diversify your overall investment portfolio across different asset classes and strategies.
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Consider Getting Started Today

Are you ready to take control of your investment journey? Dive deeper into the promising world of the Dogs of the Dow by exploring the resources provided in this article. These materials are designed to empower you with the knowledge needed to make well-informed investment decisions. Remember, while this strategy has shown potential, it's important to tailor investment decisions to your individual financial situation.

Consider how the Dogs of the Dow can fit into your unique portfolio. Don't let the opportunity to gain more insights into smart investment strategies pass you by; subscribe to my newsletter for the latest tips and market analyses delivered straight to your inbox. I believe in you! Together, let's navigate the stock market with confidence and insight.

Final Thoughts

Investing plays a significant role in personal growth and development by cultivating financial literacy, enhancing risk management skills, and encouraging discipline and patience. The emotional resilience developed through handling market volatility contributes to emotional intelligence. Additionally, successful investing can lead to wealth creation, offering financial security and the means to pursue broader personal and professional objectives. Thus, the process of investing not only impacts financial health, but also contributes to a more rounded personal development.

The Dogs of the Dow strategy stands out for its simplicity and focus on dividend income. Its annual rebalancing schedule and emphasis on large, established companies make it an accessible approach for investors, especially those new to the stock market or those who prefer a more hands-off investment style. As part of a diversified investment portfolio, the Dogs of the Dow can offer a simple and potentially rewarding approach to stock market investing. Always remember to do your research. Being an investor is being an investigator.

Thank you for reading this article.


This article is for informational and educational purposes only and should not be construed as financial advice. Readers should consider whether any opinions or recommendations in this article are suitable for their personal circumstances. Investments in stocks and other securities involve risk, and there is always the potential of losing money when you invest in securities. Past performance is not indicative of future results. The author and publisher of this article do not accept any liability for any loss or damage arising from any investment based on the information provided in this article.