One of the best strategies is to invest in the top Dogs of the Dow.
While 2020 wasn’t a great year for the Dogs, most other years have done very well.
In 2019, the Dogs were up 20%. In 2018, they were up about 1%, but still beat the Dow, which fell close to 6%. In 2017, the dogs were up 19%. In 2016, they were up 16%. In 2015, they were up 2.6%. In 2014, they were up about 11%.
Better, all of the Dogs pay dividends.
As for the 2021 Dogs of the Dow, most are doing well so far. Since January 2021:
- Chevon (CVX) with a yield of 6.05% — ran from $82 to $114
- IBM (IBM) with a yield of 5.23% – fell from $120 to $117
- Dow (DOW) with a yield of 5.11% – ran from $54 to $59
- Walgreens (WBA) with a yield of 4.72% – ran from $40 to $47.60
- Verizon (VZ) with a yield of 4.27% — fell slightly from $57 to $52
- 3M (MMM) with a yield of 3.37% – ran from $168 to $181
- Cisco (CSCO) with a yield of 3.23% — ran from $44 to $55
- Merck (MRK) with a yield of 3.24% — ran from $75 to $82
- Coca-Cola (KO) with a yield of 3.07% — ran from $52 to $56
- JP Morgan (JPM) with a yield of 2.89% — ran from $123 to $166
That’s an 80% win rate for the Dogs so far this year.
Remember, all you have to do is invest an equal amount in each Dog at the end of the year. Then, during the following year, collect dividends and hopeful gains from each stock, cash out by year end, and then repeat the process.
You may even be able to buy call options on each to potentially profit, too.
While we’re not sure of the 2022 list just yet, we’ll let you know as soon as we know.