- Year-to-Date Return of 9.41%.
- Annualized Lifetime Return of 13.85%.
- The Coca-Cola Company, Durig’s Featured Blue Chip of the Month.
This week, Durig Capital recaps the recent performance of its own unique version of the Dogs of the Dow Strategy and benchmarks it to that of its closest peers. Also explored is the importance of portfolio correlation to the overall market, and how correlation can help to provide investors an idea of how a portfolio could theoretically perform under various market conditions.
Durig’s Dogs of the Dow – September Performance Highlights
- Year-to-Date Return of 9.41%
- Trailing 1 Year Return of 6.73%
- Annualized Lifetime Return of 13.85%
Continued Historical Outperformance
The lifetime return of Durig’s Dogs of the Dow Portfolio is what truly stands out, having outperforming its closest benchmark by over 2.25%. It has also outperformed its closest benchmark in Trailing 1 Year Return by over 1.5%.
Another notable achievement of Durig’s Dogs of the Dow Portfolio discussed in a prior article is that it it outperformed both the Dow Jones Industrial Average (DJIA) and the official Dogs of the Dow Portfolio in 2018, one of the worst periods the Dow Jones Industrial Average has seen in many years (see left).
When compared to its closest benchmark (SPDR Dow Jones Industrial Avg ETF), Durig’s Dogs of the Dow Portfolio has produced an excess return of 2.79%, and has less correlation to both the Dow and the S&P 500 itself. This helps to reduce the impact of the many significant ups and downs that plague today’s financial markets.
Blue Chip Dividends
The strategic weighting employed in Durig’s Dogs of the Dow Portfolio has produced an average portfolio dividend yield of 4.04%, helping provide investors with a diverse stream of dividend income from historically resilient, blue chip companies.
This Month’s Featured Company
This month we take a closer look at the Coca-Cola Company (NYSE:KO), one of the blue chip stocks contained in Durig’s Dogs of the Dow Portfolio.
Coca-Cola, likely the largest name in the soft drink industry has been bringing refreshment to the world for over 100 years. It has overcome countless competitors and weathered many tough markets, and has become a household name around the world. For many, the word “Coke” is synonymous with any type of soft drink; talk about effective branding.
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Coca-Cola has done very well in building an extensive portfolio of beverage companies over the years (see right), ensuring that it has something special to offer each individual taste.
Coca-Cola has a long history of earnings growth, now an impressive 6.8%, but has also produced impressive sales growth, having achieved 6% in 2018 and estimated organic growth of 5% for 2019. Coca-Cola stock has now gained 21.8% year to date, and remains on Zacks recommended buy list.
A recent article by Zacks Equity Research had this to say about Coca-Cola’s most recent earnings report:
“Second-quarter 2019 marked the company’s eighth positive earnings surprise in the last nine quarters and eighth straight sales beat.. Constant innovation of brands is the key to the company’s sustained growth.”
Coca-Cola has been a global phenomenon for many years now, with its products now reaching every continent, and its growth initiatives and extensive portfolio of beverage companies are proving their effectiveness and appeal to the global consumer. The future for Coca-Cola looks robust, as it continues to innovate and adapt to the tastes of the global consumer.
For More Information
Durig Capital has several high yield portfolio strategies available, click below to learn more.
Disclaimer: Past performance is no indication of future success. Any performance shown is this publication is as of 9-5-19. * The Primary Benchmark used is SPDR Dow Jones Industrial Average ETF. The high yield strategies presented in this review by Durig Capital may not be suitable for all investors. This is not investment advice from Durig Capital, nor a specific recommendation to buy or sell securities. If you have any questions or concerns about its suitability for your personal investment, you should seek specific investment advice from a registered professional before making an investment decision.