When it comes to stock picking, there is not guaranteed strategy. Nevertheless, the purpose of purchasing stocks is to win more than you lose. Therefore, a strategy that I would use is the dogs of the TSX.
Simply picking a few of the top dividend payers on the S&P/TSX 60 Index sounds like a winning strategy, but there are potential pitfalls.
When a trader decides to buy individual stocks, he/she must have a strategy. When it comes to buying the Dogs of the S&P/TSX 60, a trader should look into the financials to ensure that the stock dividend is not going to get cut in the near future. A corporation that cuts its dividend can see a sharp decline in its stock price. Therefore, a dog of the S&P/TSX 60 can be a dog because other traders saw what you missed.