Dow Dividenden Approach RP

The RP variation (sometimes known as the ERP) was developed by the readers on the Dow Dividend Approach / Foolish Four message board. This strategy uses a different kind of formula that gives more weight to the yield. Stocks are ranked according to the ratio between the yield squared and the price using the following formula: (Yield x Yield) / Price = RP The RP ratio is calculated for all 30 Dow stocks. The stocks are ranked by RP, highest first, and the top (highest ratio) stock is eliminated. The next four stocks are purchased in equal dollar amounts. This method has beaten the Foolish Four fairly frequently. Der Portfolioaufbau erfolgt über 12 Monate, jeweils zum Monatsultimo werden 4 Aktien zu je ca. 2% Gewichtung erworben. Nach 12 Monaten ist das Portfolio zu ca. 12 * 4 * 2% = 96% investiert. Die Haltedauer der Aktien entspricht immer rollierenden 12-Monatszeiträumen. Anschließend werden sie durch die dann neuen Top 4 Aktien ersetzt bzw. ihre Gewichtung reballanciert.