Why it’s Always Best to Invest in the Dogs of the Dow

08:47 06/24/2019

One of the greatest investment opportunities are the Dogs of the Dow.

And while some analysts may write off the Dogs of the Dow theory as antiquated, it’s just not true at all.  In 2011, there were up 16.3%. In 2012, they jumped 9.9%.  In 2013, they returned 34.9%. In 2014, they returned nearly 11%.

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.  And in 2018, the Dogs of the Dow lost 4% on the year, but still outperformed the Dow Jones’ overall 6% decline. 

Plus, we have to remember that each of the Dogs also pays a healthy dividend, too.  

As for 2019, the Dogs are off to a great start so far, as markets roar to unbelievable highs.  In fact, since January 2, 2019, here’s how the Dogs have done, as of mid-June 2019:

  • IBM IBM  pays a 5.52% dividend and has run from $110.72 to $139

  • Exxon Mobil XOM  pays a 4.81% dividend and ran from $66 to $77

  • Verizon VZ  pays a 4.29% dividend and has run from $55 to $58

  • Chevron CVX   carries a dividend yield of 4.12% and ran from $106 to $124

  • Pfizer PFE  carries a dividend of 3.3% and has fallen from $42.75 to $43.50

  • Coca-Cola KO  has a dividend yield of 3.29% and ran from $46.50 to $51.50

  • JPMorgan Chase JPM  has a dividend of 3.28% and ran from $94.45 to $110

  • Procter & Gamble (PG) pays a 3.12% dividend and ran from $89.64 to $111

  • Cisco Systems CSCO  has a dividend yield of 3.05% and ran from $41.69 to $57

  • Merck MRK  has a dividend yield of 2.88% and fell from $74.78 to $86

The best part – it’s a “set it and forget it” strategy.

You simply buy the 10 biggest Dow flops of the year that pay respectable dividends.  You buy at the start of the New Year, and exit at the end of the year.  Then, you simply repeat it.  While others may say it’s an antiquated strategy with low success rates, history proves that wrong. 

Even options can be used to trade the Dogs every year.  You’d simply invest in a long-dated options dated out to December or January of the following year, set it, and forget it.

At this pace, the Dogs of the Dow could again outperform the overall market.


This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
Most Read