The Daily Dow
Friday, September 6, 1996
by Robert Sheard

LEXINGTON, KY. (September 6): Here we go with a big shake-up in the current Dow order! The stock which has rested in the #1 spot for quite some time suddenly dropped out of the top ten today, setting into place a scramble drill for the rest.

"What?" I hear you cry. "The #1 stock is suddenly gone? How can it be so?" You have to keep in mind the order of the screens in the Dow Dividend Approach. The first screen is based on dividend yield, of course, meaning only the ten stocks with the highest yields are considered.

In our case today, International Paper was the tenth stock on the high yield list, even though when you re-order those stocks by price, it's the #1 stock. So when Merck's yield passed Int'l Paper's today, IP drops out of consideration altogether and we get a new top ten list.

This doesn't affect you, however, unless you're about to start a new Dow Approach portfolio, or renew an existing one. Remember that you always hold your stocks the full year, regardless of any changes to the list during your 12-month holding period.

As for the model portfolio itself, today was a bounce-back day after yesterday's nervous sell-off. The August employment report wasn't as overpowering as many traders had feared and the threat of a big interest rate hike this month seems to have been lessened by today's numbers. So, big move down yesterday is followed by big more up today. Call it a coin toss.

Enjoy the weekend and look for the new numbers for all 30 Dow stocks in the Dow Statistics Center later this weekend.

Transmitted: 9/6/96

      THE FOOLISH FOUR MODEL (9/6/96)  

          Day    Week   Quarter  Year  History
Fool-4   0.82%   1.17%   1.67%  14.94%  14.94%
DJIA     0.94%   0.78%   0.09%  10.61%  10.61%
S&P 500  0.96%   0.57%  -2.23%   6.45%   6.45%
NASDAQ   1.22%  -0.18%  -3.85%   8.29%   8.29%


Bought  #    Stock     In At   Now   Change

1/2/96  142  DuPont    69.88  83.63  19.68%
1/2/96  380  Chevron   52.38  60.25  15.04%
1/2/96  148  E. Kodak  67.00  72.25   7.84%
1/2/96  149  3M        63.76  68.00   6.65%
7/16/96  14  Imation   26.16  25.13  -3.95%

Bought  #    Stock          Cost       Value      Change

1/2/96  142  DuPont      $9,922.25  $11,874.75  $1,952.50    
1/2/96  380  Chevron    $19,902.50  $22,895.00  $2,992.50    
1/2/96  148  E. Kodak    $9,916.00  $10,693.00    $777.00   
1/2/96  149  3M          $9,500.09  $10,132.00    $631.91   
7/16/96  14  Imation       $366.21     $351.75    $(14.46)  

      CASH      $1,524.50      
      TOTAL    $57,471.00      



Transmitted: 9/6/96

      
      

      
      

        

<% end if end function %>   home  | news  | specials  | strategies  | personal finance  | school  | help  

<% if request.querystring("source") = "yhoolnk" then referer = Request.ServerVariables("HTTP_REFERER") if referer = "" then referer = "http://finance.yahoo.com/" response.write " << Back to Yahoo! " end if %> <% function YahooWelcome if gsCookieUsername = "" and request.querystring("source") = "yhoolnk" then %>

Welcome, Fool!

Be a Fool and get free, unlimited access to our site. What we offer:  • Take a tour  • Daily News  • Talk Stocks

© Copyright 1995-2000, The Motley Fool. All rights reserved. This material is for personal use only. Republication and redissemination, including posting to news groups, is expressly prohibited without the prior written consent of The Motley Fool. The Motley Fool is a registered trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us