The Dogs of the Dow experienced greater losses during the financial crisis of 2008 than the DJIA, but in the decade that followed it modestly outperformed the bellwether index.
The cumulative effect of this performance year after year shows that despite losing more in 2008 than the index, the strategy made up ground and turned in a respectable performance for the decade.
Investors who had begun with $10,000 and held it in the DJIA from the beginning of 2008 to the end of 2018, would find their account had grown to approximately $17,350. However, an investor that followed the Dogs of the Dow strategy would find that the dividend payments made a big difference. Their ending balance of $21,420 shows the value of adjusting positions once a year.