Dogs of the Dow: Are High Quality Stocks Also a Dividend Yield Opportunity?

This is an old, but still interesting, investment strategy. The idea is to buy the 10 ‘Dogs’ or worst performers on the Dow Jones Index for a given year. The actual technique is to buy the 10 highest-yielding Dow stocks at the end of each year. That strategy would have worked well in 2010, as the highest yielding Dow stocks clearly outperformed lower-yielding members of the Dow. This chart shows how all the 30 members of Dow Jones Industrials Index performed last year. You can see that the ‘Dogs’ did well: Source: Bespoke Investment Group... Read more