Dogs of the Dow Performance: Understanding and Investing

The Dogs of the Dow strategy is a simple yet effective way to invest in the stock market. It involves selecting the 10 highest-yielding stocks from the Dow Jones Industrial Average and investing in them.

Investors have been using this strategy since the 1990s, and it has shown impressive results over the years. The average annual return of the Dogs of the Dow portfolio from 1991 to 2020 was 11.3%.

One of the key benefits of the Dogs of the Dow strategy is that it allows investors to benefit from the high dividend yields of these stocks. The average dividend yield of the Dogs of the Dow portfolio in 2020 was 4.5%.

The Dogs of the Dow strategy focuses on high-yield investments, specifically the 10 highest dividend-yielding stocks among the 30 components of the DJIA.

The strategy requires rebalancing at the beginning of each calendar year to maintain its effectiveness.

The DJIA, or Dow Jones Industrial Average, is the benchmark against which the Dogs of the Dow strategy aims to beat.

Dogs of the Dow portfolios are comprised of blue-chip stocks, which are large, well-established companies with a strong reputation for stability and growth.

The Dogs of the Dow strategy presents a straightforward formula designed to perform roughly in line with the Dow.

The strategy selects the top ten dividend-yielding stocks from the Dow, which are well-established and financially sound businesses with a market capitalization in the billions.

Investors who follow the strategy evenly allocate their capital to each of these top ten dividend-yielding stocks at the beginning of the year, holding the positions until the year-end.

The idea is to make stock picking somewhat easy and relatively safe, as the universe is limited to blue-chip stocks.

The strategy believes that companies near the bottom of the business cycle will have their share price appreciate more quickly than other companies that are near the middle or top of their business cycle.

The long-term results of the Dogs of the Dow strategy are similar to the performance of the Dow, with some years outperforming and others underperforming.

The strategy first became popular in 1991, following the publication of Michael B. O'Higgins' book, Beating the Dow, which coined the name "Dogs of the Dow."

The strategy is intended to be a low-maintenance, long-term approach to investing, making it accessible to non-professionals and individual investors.

There are many Dogs of the Dow tools available online, including calculators, charts, and stock screeners, to help investors understand and implement the strategy.

The Dow is one of the oldest and most widely followed indexes in the world, making it a reliable benchmark for the broader market.

The Dogs of the Dow strategy is not an entirely new concept, but rather a popular investing technique that has been around for decades.

By investing in the top ten dividend-yielding stocks on the Dow, investors can potentially benefit from the strategy's long-term performance and stability.

At the beginning of the year, evenly allocate the capital in your portfolio to each of the top ten dividend-yielding stocks on the Dow. This means dividing your investment equally among the top ten stocks.

An investor with a portfolio of $10,000 in 2019 would allocate $1,000 to each of the top ten dividend-yielding stocks. This approach spreads risk and potentially increases returns.

At the end of the year, re-determine the top ten dividend-yielding stocks on the Dow. This ensures your portfolio stays aligned with the market's changing landscape.

For example, at the end of 2019, the investor would re-determine the top ten dividend-yielding stocks.

The Dogs of the Dow strategy is employed by selecting the 10-highest dividend-yielding stocks in the DJIA on the last day of the year.

To invest, you would put an equal dollar amount in each of these stocks on the first trading day of the new year. This process is repeated at the beginning of each subsequent year.

With this strategy, you're essentially mimicking the performance of the DJIA, which is a low-maintenance, long-term approach.

The strategy is designed for non-professionals, making it relatively safe and easy to implement, as it only involves blue-chip stocks.

You can find various tools online, such as calculators, charts, and stock screeners, to help you make informed decisions with your money.

Tim, an individual investor, used this strategy and invested $100,000 in the top ten dividend-yielding stocks from the Dow.

The Dogs of the Dow strategy has shown some impressive performance over the years. It only slightly underperformed the DJIA in the decade following the 2008 financial crisis.

The Dogs of the Dow had a trailing total return of 10.02% from 2013 to 2023, compared to the DJIA's 11.48%. This shows that despite losing more in 2008, the strategy made up ground and had a respectable performance for the decade.

In the last five years, however, the Dogs of the Dow trailed the DJIA with a wider gap, turning in a trailing total return of 5.29% compared to the DJIA's 8.39%.

The 2019 Dogs of the Dow were a group of high-yielding stocks that made up the Dow Jones Industrial Average. The top yielding stock in 2019 was International Business Machines (IBM) with a yield of 5.52%.

IBM's high yield was impressive, but it wasn't the only stock with a high yield. ExxonMobil (XOM) had a yield of 4.81%, making it the second highest yielding stock in the group.

Verizon (VZ) was another high-yielding stock, with a yield of 4.29%. This was higher than the average yield of many other stocks in the Dow Jones Industrial Average.

The high yields of these stocks were likely attractive to income investors. For example, a $10,000 investment in IBM would have generated $552 in annual income, based on its 5.52% yield.

The following table shows the top 10 Dogs of the Dow for 2019, ranked by yield:

The Dogs of the Dow strategy has had a respectable performance over the years, despite some ups and downs.

In the decade from 2013 to 2023, the Dogs of the Dow had a trailing total return of 10.02%, which is slightly lower than the Dow Jones Industrial Average's (DJIA) 11.48% return.

During the financial crisis of 2008, the Dogs of the Dow actually experienced greater losses than the DJIA.

However, in the years following the crisis, the Dogs of the Dow made up ground and performed similarly to the DJIA.

In the last five years, from 2018 to 2023, the Dogs of the Dow trailed the DJIA, with a trailing total return of 5.29% compared to the DJIA's 8.39%.

Despite this, the strategy's overall performance over the years remains impressive, and it's worth considering for long-term investment goals.

The Dogs of the Dow is a strategy that focuses on the 10 highest-yielding stocks in the Dow Jones Industrial Average. These companies are selected based on their dividend yield.

The companies that make up the Dogs of the Dow in 2023 are:

Each of these companies has a significant presence in the market and has a history of paying consistent dividends.

Verizon is a telecommunications company that makes up the Dogs of the Dow in 2023.

The Dogs of the Dow strategy involves investing in the 10 highest-yielding Dow stocks. This approach can be a good way to find undervalued companies with strong dividend payments.

Dow, another company in the Dogs of the Dow, is a multinational corporation that produces a range of products, including chemicals and plastics.

Intel is a technology company that specializes in computer chips and other electronic components.

Walgreens is a pharmacy chain that provides a range of healthcare services and sells prescription medications.

Here are the companies in the Dogs of the Dow for 2023:

Goldman Sachs (GS) is a financial giant with a rich history dating back to 1869. It has grown into one of the world's leading financial companies, particularly in investment banking.

The company trades with a $134 billion market capitalization and should produce about $50 billion in revenue this year. This is a significant amount, and it's no surprise that Goldman Sachs is a major player in the financial industry.

Goldman Sachs posted fourth quarter and full-year earnings on January 16th, 2024, and results were better than expected on both revenue and earnings. The bank posted earnings-per-share of $5.48, which was $1.55 ahead of estimates.

Revenue was up almost 7% to $11.32 billion, beating estimates by $360 million. This growth was driven by better performances from Asset and Wealth Management, as well as Platform Solutions, partially offset by lower revenues in Global Banking and Markets.

Here's a brief overview of Goldman Sachs' earnings performance:

Note that the revenue growth for 2023 is not provided in the article section.

Coca-Cola is a company that's been around for a long time, with a 59-year dividend increase streak. This is a remarkable feat that shows the company's commitment to its shareholders.

The company posted strong earnings in the third quarter of 2023, beating expectations in several areas. Adjusted earnings-per-share came to 74 cents, which was a nickel better than estimates.

Coca-Cola's revenue was $12 billion, up 8.1% year-over-year, and a full $580 million ahead of expectations. This shows that the company is performing well and is a good sign for its investors.

The company saw gains in several regions, including Latin America (+20%), EMEA (+20%), North America (+9%), Bottling Investments (+18%), and Global Ventures (+9%). This diversification is a key factor in the company's success.

Here are some key statistics from Coca-Cola's third quarter earnings: