Dogs of the TSX 60

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.

Leave a Reply