DOW Dogs Beating Market By 147%; S&P Dogs?

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As you all know, I am a big fan of the use of stock screens, and specifically my DOW Dogs strategy.  After yesterday's trading, the three DOW Dog stocks currently held in my portfolio are up 5.70%.  You can see which stocks those are here.  To date, the total market index, the Wilshire 5000, is up 2.31% year-to-date.  If you do the math, the DOW Dogs are beating the market by 147%.  Not too bad.

As of this morning, one new name has appeared in my stock screen: Wal-Mart (WMT).  WMT is currently trading at $52.66, 8.48x price/cash flow, .46x price/sales, and 13.46x price/earnings.  Wal-Mart is also carrying a yield of 2.30%.  Overall, I think this is a very attractive name currently selling at a discount.  If you believe the economy is NOT falling off a cliff, as I do, then this is also an interesting play on consumer spending and confidence.

"Why limit this strategy to just DJIA stocks?  Can we expand this?" you say.  Well, yes, yes we can.  This morning I ran the same screen, but instead input S&P 500 stocks instead of DJIA stocks.  The only change I made was to make the price/cash flow ratio criteria more stringent, so as to not return too many names.  Here is what the screen looks like:


Criteria -
1) Component of S&P 500
2) Price/Cash Flow of 0-5x
3) Insider Activity over the last month - net accumulation


The Names -
1) Dean Foods Company (DF), $10.31, 0.00% yield, 4.26x price/cash

2) Supervalu, Inc. (SVU), $11.09, 3.16% yield, 2.03x price/cash

3) Tenet Healthcare Corporation (THC), $4.33, 0.00% yield, 3.85x price/cash

4) The AES Corporation (AES), $11.19, 0.00% yield, 3.90x price/cash

5) Time Warner Cable, Inc. (TWC), $55.17, 2.90% yield, 4.24x price/cash

6) Verizon Communications (VZ), $30.91, 6.31% yield, 3.81x price/cash

7) Whirlpool Corporation (WHR), $72.32, 2.38% yield, 3.87x price/cash


Admittedly, I am not all that interested in the names that pay no dividend.  Three names on this list do not pay one: DF, THC, and AES.  However, I am going to keep track of all these names, and see how they perform relative to the market.  As of yesterday's close the Wilshire 5000 was at 11,762.80.  I suspect the broad market, and all of these names, will be higher by the end of the year.