Dogs Of The Dow

Dogs of the Dow is an investment strategy that involves picking the 10 highest-yielding stocks in the Dow Jones Industrial Average, and holding onto them for a year. The theory behind this strategy is that high-yielding stocks are undervalued and have the potential to increase in value over time. Many investors believe that following the Dogs of the Dow strategy can provide stable returns and outperform the market. However, critics argue that this strategy may not always be successful, as it relies on historical data and past performance. Regardless, Dogs of the Dow is a popular investment approach that continues to be discussed and debated in the financial community.

Symbol	Exchange	Name	MCAP	Price	Change	PE Ratio	Yield
DOW	NYSE	Dow Inc	30.83B	44.04	-1.24	26.73	0.07
CSCO	NASDAQ	Cisco Systems Inc	233.63B	58.66	-0.34	25.69	0.03
KO	NYSE	Coca-Cola Co	270.57B	62.81	0.45	26.07	0.03
MMM	NYSE	3M Co	70.50B	129.47	-0.35	13.57	0.03
JNJ	NYSE	Johnson & Johnson	349.76B	145.27	0.56	24.11	0.03
CVX	NYSE	Chevron Corp	275.71B	154.64	-0.05	15.81	0.05
IBM	NYSE	International Business Machines Corp	207.50B	224.41	1.12	32.71	0.03
AMGN	NASDAQ	Amgen Inc	143.45B	266.86	0.14	33.78	0.03
GS	NYSE	The Goldman Sachs Group Inc	178.64B	569.08	0.53	17.08	0.02

Dogs of the Dow

Introduction

Dogs of the Dow is a popular investment strategy that involves selecting and investing in a portfolio of ten stocks from the Dow Jones Industrial Average based on dividend yield. The strategy aims to outperform the overall market by focusing on high-quality, undervalued stocks that pay consistent dividends.

How Dogs of the Dow Works

At the beginning of the year, investors using the Dogs of the Dow strategy select the ten highest dividend-yielding stocks from the Dow Jones Industrial Average. These stocks are referred to as the “Dogs”. The idea is that these high-yielding stocks are temporarily undervalued and have the potential to outperform the market in the upcoming year.

Benefits of Dogs of the Dow

• Simple and easy to understand
• Focuses on high-quality dividend-paying companies
• Potential for outperforming the market

Risks of Dogs of the Dow

• Relies on historical data and may not always perform as expected
• Does not take into account market conditions or individual stock performance
• Requires regular monitoring and rebalancing

Conclusion

Dogs of the Dow is a popular investment strategy that can be appealing to long-term investors seeking consistent returns. While it is not without risks, many investors have found success using this strategy to build a diversified dividend-yielding portfolio.

Frequently Asked Questions

1. What is the history of Dogs of the Dow?

The Dogs of the Dow strategy was popularized by Michael O'Higgins in his book "Beating the Dow" in the early 1990s. The strategy is based on the idea that high-dividend-yielding stocks can provide attractive returns over time.

2. How often should I rebalance my Dogs of the Dow portfolio?

Many investors choose to rebalance their Dogs of the Dow portfolio annually at the beginning of the year. This allows for a fresh selection of high-dividend-yielding stocks based on the most recent data.

3. Can I customize my Dogs of the Dow portfolio?

While the traditional Dogs of the Dow strategy focuses on the top ten dividend-yielding stocks from the Dow Jones Industrial Average, investors can customize their portfolio by including additional factors such as market conditions or individual stock analysis.