How Well Did the Dogs of the Dow Strategy Do In 2019? -
Thursday , 26 November 2020

How Well Did the Dogs of the Dow Strategy Do In 2019?

…The Dogs of the Dow strategy is one where:

  • investors select the 10 stocks that have the highest dividend yield from the stocks in the Dow Jones Industrial Average Index after the close of business on the last trading day of the year.
  • Once the ten stocks are determined, an investor invests an equal dollar amount in each of the ten stocks and holds that portfolio for the entire next year.
  • The popularity of the strategy is its singular focus on dividend yield.

As the table below shows, for all of 2019, the Dogs of the Dow returned 19.7% versus 25% and 31% return for the DJIA Index and SP500 Index, respectively…

For investors pursing the Dow Dogs strategy, there are three new holdings for the 2020 Dow Dogs:

  1. Dow Inc. (DOW) with a dividend yield of 5.12%
  2. 3M (MMM) with a dividend yield of 3.26% and,
  3. Walgreens Boots Alliance (WBA) with a dividend yield of 3.10%.

The three stocks being replaced are:

  1. JPMorgan,
  2. Procter & Gamble (PG) and
  3. Merck (MRK).

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Editor’s Note: The above excerpts are from the original article by David Templetonand have been re-formatted, color highlighted, edited ([ ])* and abridged (…) by Lorimer Wilson, editor of – Your KEY To Making Money! – for the sake of clarity, and brevity to provide a fast and easy read.

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*(The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.)