The Dow 10 is focused on high dividend yield stocks in the Dow Jones Industrial Average Index (DJIA). Outperformance of high dividend Dow stocks was supposedly discovered by John Slatter in the late 1980′s and began to increase in popularity in the early nineties following Michael O’Higgins book “Beating The Dow”. The Dow 10 is exactly the same strategy as the “Dow Dogs” or “Dogs of the Dow”

The Dow-10 strategy consists of buying the ten highest yielding dow stocks and rebalancing annually.

Another popular derivative of the strategy is picking the five lowest priced of the 10 stocks (Small Dogs from Dow Dogs strategy).

The 2012 Dow 10 Stocks

T – AT&T, $30.24, Yield: 5.82%
VZ – Verizon, $40.12, Yield: 4.99%
MRK – Merck, $37.7, Yield: 4.46%
PFE – Pfizer, $21.64, Yield: 4.07%
GE – General Electric, $17.91, Yield: 3.80%
DD – DuPont, $45.78, Yield: 3.58%
JNJ – Johnson & Johnson, $65.58, Yield: 3.48%
INTC – Intel, $24.25, Yield: 3.46%
PG – Procter & Gamble, $66.71, Yield: 3.15%
KFT – Kraft, $37.36, Yield: 3.10%

2012, Five Lowest Priced Dow 10 Stocks

GE – General Electric, $17.91, Yield: 3.80%
PFE – Pfizer, $21.64, Yield: 4.07%
INTC – Intel, $24.25, Yield: 3.46%
T – AT&T, $30.24, Yield: 5.82%
KFT – Kraft, $37.36, Yield: 3.10%