What Are Dogs of the Dow?
Dogs of the Dow is a stock picking strategy that tries to beat the Dow Jones Industrial Average (DJIA) each year by selecting the highest dividend DOW stocks. The strategy produces a portfolio resulting in an equal amount of money being invested in the 10 highest dividend-yielding, blue-chip stocks among the 30 components of the DJIA. At the beginning of each year the portfolio is re-balanced. A variation of the Dogs of the Dow is the Dow 5 or Small Dogs. The Dow 5 is the lowest priced stocks of the Dogs of the Dow.
Understanding Dogs of the Dow
The DJIA is one of the oldest and most widely followed indexes in the world—and generally is seen as a barometer for the broader market. As a result it is not uncommon for market strategists and investors to base investing techniques on some components of the DJIA and / or attempt to beat it. One reason the Dogs of the Dow is so popular is that it presents a straightforward formula designed to mirror the performance of the Dow.
The strategy first became a popular fixture in 1991 with the publication of Michael B. O’Higgins’s book, “Beating the Dow,” in which he also coined the name “Dogs of the Dow.”
Dogs of the Dow Methodology
Dogs of the Dow is based on the premise that blue-chip companies do not alter their dividend to reflect existing economic conditions and, therefore, the dividend is a measure of the average worth of the company. The stock price however, can and will fluctuate throughout the business cycle. This implies that companies with a high dividend relative to stock price that are near the bottom of their business cycle and therefore their stock price would increase faster than companies with low dividend yields. Based on this, an investor reinvesting in high-dividend-yielding companies near or at the bottom of their business cycle on annual basis should outperform the overall market.
Dividend stocks offer current income and growth potential, so it is no surprise many investors are attracted to them. All 30 companies that comprise the DJIA pay dividends and are among the most important blue-chip businesses in the global economy.
- The Dogs of the Dow is a well-known strategy first published in 1991.
- The strategy attempts to maximize the yield of investments by buying the highest-paying dividend stocks available from the DJIA.
- The strategy’s track record shows that it beat the index during the 10-year stretch that followed the financial crisis.
2020 Dogs of the Dow also referred to as the Dow 10 are itemized in the table below. Dividend information for the Dogs of the Dow can be viewed in our Dow10 Dividend Calendar. For the purposes of calculating total return; dividends received during the current investment period are presented.
|Symbol||Description||Purchase Price||Amount Invested||# Shares||Last Price||Unrealized Gain/Loss %||Dividend Rate||Current Yield||Current Value||Total Dividends Received||Pay Back||id||Open Date||Strategy||Position||Sell Date||Sell Price||Net Profit||Realized Gain/Loss %||ATGL Rule||Industry||SCTR||Size||Comments||Stop Loss||color||Chart||Update Date||Status||Daily Change %||Volume||Post Type||ATGL 60 Min||Portfolio Weight||Yield on Cost||Projected Annual Dividends||Profit / Loss||Annualized Profit/Loss|
|DOW||Dow Inc||$54.73||$10,000.00||183||$46.04||-15.88%||2.80||6.08%||$8,412.00||$384.00||3.84%||1196||2020-01-01||Dow10||Long||$0.00||0.00%||Chemicals: Specialty||Large||Dow10||Buy & Hold||https://stockcharts.com/h-sc/ui?s=DOW&p=W&yr=1&mn=6&dy=0&id=p85210974850&a=715153892||2020-02-23 21:27:42||open||-0.80||4090217||Trade||10.65%||5.12%||$512.00||-12.04%||-|
|XOM||ExxonMobil||$69.78||$10,000.00||143||$34.64||-50.36%||3.48||10.05%||$4,964.00||$374.00||3.74%||1197||2020-01-01||Dow10||Long||$0.00||0.00%||Integrated Oil||Energy Minerals||Large||Dow10||Buy & Hold||https://stockcharts.com/h-sc/ui?s=XOM&p=W&yr=1&mn=6&dy=0&id=p85210974850&a=715153899||2020-02-23 21:28:29||open||0.93||23486012||Trade||6.28%||4.99%||$499.00||-46.62%||-|
|VZ||Verizon Communications||$61.40||$10,000.00||163||$59.39||-3.27%||2.46||4.14%||$9,673.00||$300.00||3.00%||1198||2020-01-01||Dow10||Long||$0.00||0.00%||Major Telecommunications||Communications||Large||Dow10||Buy & Hold||https://stockcharts.com/h-sc/ui?s=VZ&p=W&yr=1&mn=6&dy=0&id=p85210974850&a=715153897||2020-02-23 21:29:27||open||0.34||10676512||Trade||12.24%||4.01%||$401.00||-0.27%||-|
|CVX||Chevron Corporation||$120.51||$10,000.00||83||$71.83||-40.39%||4.96||6.91%||$5,960.00||$321.00||3.21%||1199||2020-01-01||Dow10||Long||$0.00||0.00%||Integrated Oil||Energy Minerals||Large||Dow10||Buy & Hold||https://stockcharts.com/h-sc/ui?s=CVX&p=W&yr=1&mn=6&dy=0&id=p85210974850&a=715153801||2020-02-23 21:30:28||open||0.04||11070519||Trade||7.55%||4.12%||$412.00||-37.18%||-|
|PFE||Pfizer||$39.18||$10,000.00||255||$36.05||-7.99%||1.50||4.16%||$9,201.00||$291.00||2.91%||1200||2020-01-01||Dow10||Long||$0.00||0.00%||Pharmaceuticals: Major||Health Technology||Large||Dow10||Buy & Hold||https://stockcharts.com/h-sc/ui?s=PFE&p=W&yr=1&mn=6&dy=0&id=p85210974850&a=715153896||2020-02-23 21:31:14||open||0.81||13629626||Trade||11.65%||3.83%||$383.00||-5.08%||-|
|MMM||3M Corporation||$176.42||$10,000.00||57||$160.27||-9.15%||5.82||3.63%||$9,084.00||$250.00||2.50%||1201||2020-01-01||Dow10||Long||$0.00||0.00%||Industrial Conglomerates||Producer Manufacturing||Large||Dow10||Buy & Hold||https://stockcharts.com/h-sc/ui?s=MMM&p=W&yr=1&mn=6&dy=0&id=p85210974850&a=715153895||2020-02-23 21:32:29||open||-0.09||1949057||Trade||11.50%||3.30%||$330.00||-6.66%||-|
|WBA||Walgreens||$58.96||$10,000.00||170||$35.43||-39.91%||1.83||5.17%||$6,009.00||$234.00||2.34%||1202||2020-01-01||Dow10||Long||$0.00||0.00%||Drugstore Chains||Retail Trade||Large||Dow10||Buy & Hold||https://stockcharts.com/h-sc/ui?s=WBA&p=W&yr=1&mn=6&dy=0&id=p85210974850&a=715153898||2020-02-23 21:33:27||open||1.14||5955371||Trade||7.61%||3.10%||$310.00||-37.57%||-|
|CSCO||Cisco Systems||$47.96||$10,000.00||209||$38.45||-19.83%||1.42||3.69%||$8,017.00||$223.00||2.23%||1203||2020-01-01||Dow10||Long||$0.00||0.00%||Computer Communications||Electronic Technology||Large||Dow10||Buy & Hold||https://stockcharts.com/h-sc/ui?s=CSCO&p=W&yr=1&mn=6&dy=0&id=p85210974850&a=715153708||2020-02-23 21:34:11||open||1.59||22966645||Trade||10.15%||2.96%||$296.00||-17.60%||-|
|KO||Coca-Cola||$55.35||$10,000.00||181||$48.72||-11.98%||1.62||3.33%||$8,802.00||$148.00||1.48%||1204||2020-01-01||Dow10||Long||$0.00||0.00%||Beverages: Non-Alcoholic||Consumer Non-Durables||Large||Dow10||Buy & Hold||https://stockcharts.com/h-sc/ui?s=KO&p=W&yr=1&mn=6&dy=0&id=p85210974850&a=715153894||2020-02-23 21:35:02||open||0.04||12603379||Trade||11.14%||2.93%||$293.00||-10.50%||-|
|IBM||International Business Machine||$134.04||$10,000.00||75||$118.95||-11.26%||6.49||5.46%||$8,874.00||$364.00||3.64%||1205||2020-01-01||Dow10||Long||$0.00||0.00%||Information Technology||Technology Services||Large||Dow10||Buy & Hold||https://stockcharts.com/h-sc/ui?s=IBM&p=W&yr=1&mn=6&dy=0&id=p05028467367&a=715164133||2020-02-23 21:35:48||open||0.73||2953686||Trade||11.23%||4.84%||$484.00||-7.62%||-|
The Dogs of the Dow are presented below in the pie chart to show both the current allocation and diversification. The percent allocation is automatically updated based on the market and performance of the underlying securities. The initial allocation for the Dow 10 and Dow 5 strategies assumes an equal percentage in each security. Variations from the initial allocation highlights the strength or weakness of a security over time.
Please send some profits to help animals (ASPCA).