“Dogs of the Dow” is an investment strategy that attempts to beat the Dow Jones Industrial Average (DJIA) each year by leaning portfolios toward high-yield investments. The general concept is to allocate money to the 10 highest dividend-yielding, blue-chip stocks among the 30 components of the DJIA.
This strategy requires re-balancing at the beginning of each calendar year.
- The Dogs of the Dow is a well-known strategy first published in 1991.
- The strategy attempts to maximize the yield of investments by buying the highest-paying dividend stocks available from the DJIA each year.
- The strategy’s track record shows that it beat the index during the 10-year stretch that followed the financial crisis.