The Dogs of the Dow returned nearly 20% in 2019.
While that was below the Dow Jones’ 25% return, the “set it and forget it” strategy behind the Dogs worked out well again – with dividend payouts to boot.
Better, the strategy has a strong history of solid returns.
In 2009, the Dogs were 16.9%. In 2010, they jumped 20.5%.
In 2011, there were up 16.3%. In 2012, they jumped 9.9%. In 2013, they returned 34.9%. In 2014, they returned 10.8%. In 2015, they did okay, returning just 2.6%.
In 2016, the Dogs returned 16% on average. In 2017, the Dogs of the Dow returned 19% for the year. In 2018, the Dogs eked out a 1% gain, as the Dow lost 5.6% for the year, according to Forbes. The best part – dividends were paid out from each of the Dogs.
For this year, the top Dogs of the Dow include:
· Dow Inc. (NYSE:DOW) pays a yield of 5.21%
· Exxon Mobil (NYSE:XOM) pays a yield of 4.97%
· IBM (NYSE:IBM) pays a yield of 4.81%
· Verizon (NYSE:VZ) pays a yield of 4.11%
· Chevron (NYSE:CVX) pays a yield of 4.02%
· Pfizer Inc. (NYSE:PFE) pays a yield of 3.91%
· Walgreens (NASDAQ:WBA) pays a yield of 3.09%
· Cisco Systems (NASDAQ:CSCO) pays a yield of 2.95%
· Coca-Cola (NYSE:KO) pays a yield of 2.95%
At the start of the year, investors will buy the highest yielding 10 Dow Jones stocks that fell out of favor the year prior. Invest an equal amount in each. Sell by year end. And repeat. To this day, it’s still one of the best buy and hold strategies.