The Top Reasons to Invest in the Dogs of the Dow Every Year

Ian Cooper
Ian Cooper
Cooper was among the few analysts to spot the financial crisis of 2008, the top of subprime and Alt-A, the death of Lehman Brothers, Bear Stearns, and New Century Financial, and even the Dow’s collapse to 6,500, as well as its recovery. He even called for gold to rally well above $1.500 when it traded under $600.

One of the top year-end strategies to consider is the Dogs of the Dow.

Not only does the strategy allow you to potentially profit from down and out Dow stocks, it allows you to collect respectable dividends, too.

Over the last six years, here’s how the Dogs did compared to the Dow Jones.

  • In 2015, the Dogs returned 2.6%, as the Dow returned 0.2%
  • In 2016, the Dogs returned 20.8%, as the Dow returned 16.5%
  • In 2017, the Dogs returned 23.7%, as the Dow returned 28.1%
  • In 2018, the Dogs returned about 1%, as the Dow fell 3.5%
  • In 2019, the Dogs returned 19.7%, as the Dow returned 25.3%
  • In 2020, the Dogs lost 12.7% of their value, as the Dow gained 7.2%

Plus, consider this.

“Coming into 2020, $10,000 invested in the Dogs at the beginning of the decade would have turned into about $40,100. For the overall Dow industrials, $10,000 would have become about $35,500. With 2020 returns added in, the Dow has the edge on the Dogs, at about $38,400 to $37,400,” as noted by Barron’s.

Even more attractive are the dividends.  For an idea, here’s how the Dogs of the Dow have performed since January 2021.

  • Chevon (CVX) ran from $82 to $112, and yields 4.78%
  • IBM (IBM) ran from $120 $126, and yields 5.2%
  • Dow (DOW) fell from $54 to $53, and yields 5.13%
  • Walgreens (WBA) ran from $40 to $48, and yields 3.96%
  • Verizon (VZ) fell from $57 to $53, and yields 4.81%
  • 3M (MMM) ran from $168 to $171, and yields 3.45%
  • Cisco (CSCO) ran from $44 to $60, and yields 2.46%
  • Merck (MRK) is at breakeven at $75, and yields 3.65%
  • Coca Cola (KO) ran from $52 to $57.50, and yields 2.92%
  • JP Morgan (JPM) ran from $123 to $152, and yields 2.63%

 

While we’re not sure of the 2022 Dogs of the Dow just yet, the strategy is easy.  Investors simply invest an equal amount among all 10 Dogs of the Dow at the start of the year, collect dividends throughout the year, close the positions by year end – and repeat.

 

I Can’t Drive 55

I Can’t Drive 55

johnh
On May 19, 2022

Let’s start walking through a deeper dive into the numbers and see where the market is going from here…

You Can Do This, We Can Help

You Can Do This, We Can Help

johnh
On May 18, 2022

Let’s start walking through a deeper dive into the numbers and see where the market is going from here…

Get To Know The Power Of Tink

Get To Know The Power Of Tink

johnh
On May 17, 2022

This one company just posted strong earnings at the end of April and has less exposure to interest-rate risk.

Mark This Date On Your Calendar!

Mark This Date On Your Calendar!

johnh
On May 16, 2022

Could this one date really mean so much to the US economy? That date is June 1st, 2022. Today’s trade ideas are in the transportation sector…

Three Stocks Ready For a Breakout!

Three Stocks Ready For a Breakout!

johnh
On May 15, 2022

Taiwan Semiconductor Manufacturing Company (TSM) reported their first-quarter revenue was up 55% year-over-year and they are planning on price hikes in 2023 that will be passed along to their customers.

I Warned You This Would Happen

I Warned You This Would Happen

johnh
On May 12, 2022

This is why you read Filthy Rich, Dirt Poor. On April 27, I warned you that the S&P 500 was sending warning signs it would trade lower and told you there are three critical levels of support.

Is This Indicator Signaling a Bottom?

Is This Indicator Signaling a Bottom?

johnh
On May 11, 2022

Is this one indicator showing us that there is some relief in sight?

See the one indicator that may predict a market turnaround.

What’s For Dinner?

What’s For Dinner?

johnh
On May 10, 2022

If restaurants weren’t hit hard enough during the pandemic, some of them are struggling to find their footing as food prices soar.

These Wings Flew Too Close To the Sun

These Wings Flew Too Close To the Sun

johnh
On May 9, 2022

If restaurants weren’t hit hard enough during the pandemic, some of them are struggling to find their footing as food prices soar.

How The Great Divide Will Soon Impact Your Shopping Experience

How The Great Divide Will Soon Impact Your Shopping Experience

johnh
On May 9, 2022

The pandemic has changed how some people think about life, work, and what they want out of both.

PREV NEXT

Contact

267 Kentlands Blvd #225
Gaithersburg, MD 20878

P. (866) 257-3008
(Monday-Friday 9:00 AM-5:00 PM EST)

E. [email protected]

Products

About

Publisher of actionable and proven strategies and tactics to help investors build wealth and reach seven-figure portfolios.

Receive the latest news

Subscribe To Our Daily Newsletter

Get notified about new articles, special events, training, and much more

Like What You See?

Leave your info below to get more options and trading ideas to your inbox

Yes, send me news to my inbox.