Dow Dogs?

Dow Dogs Investing

Invest in the Dow Dogs? Do you wonder what that means?

“Dow Dogs” or “Dogs of the Dow” refers to an investing strategy that buys and holds equal dollar amounts of the 10 highest-yielding dividend stocks of the Dow Jones Industrial Average (^DJI). The strategy counts on the idea that blue-chip stocks with high yields are near the bottom of their business cycle and will hopefully do much better going forward. Investors in the strategy then would not only get large dividends but also gains in the stocks price.

Investing in the Dogs of the Dow is relatively simple. After the stock market closes on the last day of the year, of the 30 stocks that make up the Dow Jones Industrial Average, select the ten stocks which have the highest dividend yield. Then simply get in touch with your broker and invest an equal dollar amount in each of these ten high yield stocks. Then hold these ten “Dogs of the Dow” for one year. Repeat these steps each and every year. That’s it!

2018 Dow Dogs and End-Of-Year Returns

Merck (MRK) +40%
Pfizer (PFE) +24.82%
Cisco (CSCO) +16.57%
Verizon (VZ) +11.25%
Coca Cola (KO) +6.79%
Procter & Gamble (PG) +3.62%
Chevron (CVX) -9.78%
Exxon Mobil (XOM) -15.105
IBM (IBM) -22.54%
General Electric (GE) -55.39%

Total Dow Dogs 2018 Return = +0.02%
Total DJIA 2018 Return = -5.63%

2019 Dow Dogs

IBM (IBM) 5.71% Yield
Exxon Mobil (XOM) 5.03% Yield
Verizon (VZ) 4.31% Yield
Chevron (CVX) 4.27% Yield
Coca Cola (KO) 3.46% Yield
JPMorgan (JPM) 3.45% Yield
Cisco (CSCO) 3.32% Yield
Pfizer (PFE) 3.30% Yield
Procter & Gamble (PG) 3.19% Yield
3M (MMM) 2.98% Yield

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