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dogs of the Dow

   Also found in: Wikipedia 0.04 sec.
Dogs of the Dow
An investing strategy that consists of buying the 10 DJIA stocks with the highest dividend yield at the beginning of the year. The portfolio should be adjusted at the beginning of each year to include the 10 highest yielding stocks.

Notes:
The strategy was formulated in 1972 and has proven to be successful. In fact, as Dog of the Dow investors readjust their portfolios each year, it places pressure on the stocks involved.


Dogs of the Dow
The 10 stocks of the 30 on the Dow Jones Industrial Average with the most depressed prices and consequently the highest yields. The investor buying these stocks speculates that they will bounce back over a one-year period.

dogs of the Dow
The investment strategy of purchasing the ten stocks in the Dow Jones Industrial Average that offer the highest current dividend yield. The ten-stock portfolio is continuously rebalanced as stock prices and dividends change. The theory is that Dow stocks offering the highest dividend yield are solid investments that are temporarily undervalued.

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There's a time-honored investment strategy called Dogs of the Dow that says to buy the poorest recent performers of the 30 stocks in the group - and then watch them recover.
com wrote: "One way to approach the Dogs of the Dow is to find the stocks that are in keeping with the spirit of the strategy, those Blue Chips that are out of favor and undervalued by the market, while avoiding the real operational duds.
Dogs of the Dow, Merrill Lynch, an analysis on whether to
 
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