Dogs of the Dow 2024: Finding Value in the Market

The Dogs of the Dow strategy is a simple yet effective way to find value in the market. This approach involves investing in the 10 highest-yielding stocks in the Dow Jones Industrial Average.

Research has shown that the Dogs of the Dow have historically outperformed the broader market. In fact, a study found that the Dogs of the Dow have beaten the S&P 500 by an average of 4.1% per year over the past 40 years.

Investors can use this strategy to add a value-oriented component to their portfolio.

The Dogs of the Dow strategy is a long-term investing approach that focuses on dividend stocks. It involves investing equal amounts into the 10 highest-dividend-yielding stocks from the Dow Jones Industrial Average.

The strategy is designed to provide investors with a good chance at generating strong returns while being relatively lower-risk. It works by selecting from only the 30 stocks in the Dow, which are already blue-chip companies. This filtering process helps to reduce risk and increase potential returns.

To use this strategy, you start by investing in the 10 highest-dividend-yielding stocks from the Dow Jones Industrial Average, and then rebalance the portfolio every year into equal amounts of the 10 highest-yielding stocks in the Dow. This process is repeated annually.

The results of the Dogs of the Dow portfolio strategy can be widely divergent from year to year, as illustrated by the example of the 2018 portfolio, which generated 27% in total returns compared to the Dow's 21%.

The Dogs of the Dow strategy is a long-term investing approach that involves investing in the 10 highest-dividend-yielding stocks from the Dow Jones Industrial Average.

To implement this strategy, you'll need to rebalance your portfolio every year to equal amounts of the 10 highest-yielding stocks in the Dow.

Rebalancing is crucial as it allows you to take advantage of temporary price dislocations and an eventual recovery, profiting from above-average dividend yields.

By repeating this process each year, you can potentially generate higher returns than investing in an index fund that tracks the Dow or even the broader S&P 500 Index.

The strategy focuses on dividend stocks, which can provide a relatively stable source of income and lower volatility compared to growth stocks.

Here are the 10 Dogs of the Dow for 2024, with their corresponding dividend yields:

Note that the dividend yields may change over time, so it's essential to regularly review and rebalance your portfolio.

The Dogs of the Dow strategy can result in widely divergent results from year to year, and there are tax implications to consider, such as capital gains taxes on realized returns.

Goldman Sachs (GS) is the 10th stock on our list of Dogs of the Dow for 2024, with a dividend yield of 2.9%.

The company has a rich history, founded in 1869 and growing into one of the world's leading financial companies over 150+ years.

Goldman Sachs competes in a wide variety of service activities to a diverse and broad base of global customers.

With a market capitalization of $134 billion, the company should produce around $50 billion in revenue this year.

Goldman Sachs recently posted better-than-expected earnings on both revenue and earnings, with a $5.48 earnings-per-share, $1.55 ahead of estimates.

Revenue was up almost 7% to $11.32 billion, beating estimates by $360 million.

Here's a breakdown of Goldman Sachs' recent performance:

Note that unadjusted earnings included a charge of 83 cents from the FDIC's special assessment on large banks.

Amgen Inc. (AMGN) is a biotech giant that's been making waves in the healthcare industry. Amgen discovers, develops, manufactures, and sells medicines that treat serious illnesses.

The company focuses on six key areas: cardiovascular disease, oncology, bone health, neuroscience, nephrology, and inflammation. These areas are crucial in addressing some of the most pressing health concerns of our time.

Amgen's financials are quite impressive. On February 6th, 2024, the company announced fourth quarter and full year results for the period ending December 31st, 2023. Revenue grew 19.9% to $8.2 billion.

This growth is significant, especially when compared to expectations. Amgen's revenue was $90 million ahead of forecasts. Adjusted earnings-per-share of $4.71 also compared favorably to $4.09 in the prior year.

For 2023, Amgen's revenue increased 7% to $28.2 billion. This is a testament to the company's commitment to innovation and customer satisfaction.

The Dogs of the Dow are a low-risk way for unsophisticated investors to approach dividend growth investing.

These blue-chip stocks have significant competitive advantages and lengthy histories of paying rising dividends, making them a great choice for investors looking for a steady income stream.

The Dogs of the Dow strategy is not about outperforming the broader market every year, but about providing investors with a combination of attractive current yield and steadily rising income over time.

Here are some examples of high-quality dividend growth stocks that can be found using the Dogs of the Dow strategy:

Investors can also explore other high-yield securities and income securities using the resources provided by Sure Dividend, such as the 20 Highest Yielding Dividend Kings or the 20 Best Ultra High-Dividend Stocks.

By investing in the Dogs of the Dow, investors can virtually guarantee themselves a combination of attractive current yield and steadily rising income over time.

The Small Dogs of the DOW strategy is a variation of the original Dogs of the DOW, with a smaller number of companies selected. It's a simple strategy that selects the five companies with the lowest stock price from the original Dogs list.

The performance of Small Dogs of the DOW is compared to the Dogs and S&P 500 in the article, showing a 5-year return of 9.60% and a 10-year return of 14.90%. However, in the 15-20 year range, the Small Dogs slightly outperformed both the Dogs and S&P 500 during the 2008 financial crisis.

Here's a comparison of the returns:

As we explore the world of Small Cap Dogs, let's take a closer look at the third contender: Dow Inc. (DOW).

Dow Inc. is a standalone company that was spun off from its former parent, DowDuPont. This breakup has resulted in three publicly traded companies, with Dow Inc. being the one that focuses on the former Materials Science business.

Dow Inc. started trading on its own on April 1st, 2019, with the ticker DOW. This year, it's expected to produce around $44 billion in revenue.

Dow Inc. reported its fourth-quarter and full-year earnings on January 25th, 2024, and the results were better than expected on both the top and bottom lines.

The Small Dogs of the DOW strategy is a variation of the popular Dogs of the DOW investment strategy.

It's a simple approach that selects the five companies with the lowest stock price from the original Dogs portfolio.

The Small Dogs portfolio is smaller in size, which may make it more appealing to small investors who don't want to hold a large number of stocks.

The strategy has a shorter history, but it's worth noting that over the past 15 years, we've seen both the biggest financial crisis since World War II and the longest bull market in history.

Here's a comparison of the Dogs, Small Dogs, and the S&P 500:

The Small Dogs strategy may not be as consistent as the Dogs, but it's worth noting that it slightly outperformed both the Dogs and S&P 500 during the financial crisis of 2008.