As the year winds down and you consider investment moves either now or for early 1998, MERRILL LYNCH FINANCIAL CONSULTANT NORMAN N. FORRESTER (800-937-0843) says one tried and true strategy that has come up a winner again and again is buying stock in the “dogs of the Dow.” The unseemly name, one that’s commonly used around Wall Street, refers to the the 10 stocks in the Dow Jones Industrial Average with the highest yields at year’s end. More often than not, the shares of those 10 companies have been beaten up during the previous year, hence pushing the yield or percentage of their dividends to the company’s overall stock price up. Forrester says the market has always favored large caps over the long term and that investors eventually come of the market, and still stand to make healthy gains. Case in point: Contender at the beginning of this year, Caterpillar and General Electric have gained 54% and 27%, respectively, as of 8/31/97.
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