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What is the "Dogs of the Dow" strategy?
This simple strategy identifies the top Dow Dividend stocks. It suggests buying the 10
Dow Jones Industrials with the highest dividend yields and then reallocating the portfolio every year based on the current top 10. They’re considered "dogs" because their stock prices are below their Dow peers, suggesting that these stocks are due to outperform other blue-chip stocks over the coming year.There are several variations of this approach. One suggests buying the cheapest five of the 10 Dow Dogs. Another, made popular by the Motley Fool, thins the list to four -- and is known as the "Foolish Four." The various "Dogs of the Dow" approaches are no dogs in the return department, however, with annualized gains over a quarter century ranging from more than 17% to more than 20%.Return to Questions
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