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 | 26.63 | 0.07 |
| CSCO | NASDAQ | Cisco Systems Inc | 233.63B | 58.66 | -0.34 | 25.12 | 0.03 |
| KO | NYSE | Coca-Cola Co | 270.57B | 62.81 | 0.45 | 25.95 | 0.03 |
| MMM | NYSE | 3M Co | 70.50B | 129.47 | -0.35 | 13.45 | 0.03 |
| JNJ | NYSE | Johnson & Johnson | 365.65B | 151.87 | -0.90 | 23.88 | 0.03 |
| CVX | NYSE | Chevron Corp | 275.71B | 154.64 | -0.05 | 15.70 | 0.05 |
| IBM | NYSE | International Business Machines Corp | 190.62B | 206.16 | -1.36 | 32.56 | 0.03 |
| AMGN | NASDAQ | Amgen Inc | 143.45B | 266.86 | 0.14 | 33.64 | 0.03 |
| GS | NYSE | The Goldman Sachs Group Inc | 189.22B | 602.78 | 1.12 | 16.59 | 0.02 |
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.
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.
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.
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.
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.
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.