Dogs Of The Dow

DEFINITION of '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.

BREAKING DOWN 'Dogs Of The Dow'

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

RELATED TERMS
  1. Value Stock

    A stock that tends to trade at a lower price relative to it's ...
  2. Indicated Yield

    The dividend yield that a share of stock would return based on ...
  3. Cats And Dogs

    A slang term referring to speculative stocks that have short ...
  4. Running Yield

    The annual income on an investment divided by its current market ...
  5. Yield Elbow

    The point on the yield curve indicating the year in which the ...
  6. Gross Yield

    The yield on an investment before the deduction of taxes and ...
Related Articles
  1. Investing Basics

    Barking Up The Dogs Of The Dow Tree

    One well-known and successful strategy for cashing in on dividends is the Dogs of the Dow. Here's what you need to know about them.
  2. Investing

    Don't Dump On The Dogs

    Just because a stock is in a slump doesn't mean it's time to sell. Some value managers make a living by investing in "dogs."
  3. Stock Analysis

    Beat the Market in 2013 With the Dogs of the Dow

    Are you looking to beef up your blue chip exposure, but aren't quite sure how to best go about doing it? Sometimes, the best stock-picking strategies are the simplest ones. The "Dogs of the Dow" theor ...
  4. Investing Basics

    Understanding And Playing The Dow Jones Industrial Average

    Learn strategies for investing in this price-weighted index and how to interpret its movements.
  5. Stock Analysis

    Which Dow 'Dogs' Are Poised To Beat The Pack In 2014?

    It's been a good year for stocks that make up the Dow Jones Industrial Average, as 28 of the 30 components have risen in value (with IBM (NYSE: IBM) and Caterpillar (NYSE: CAT) as the only laggards).‚ÄčAnd ...
  6. Investing

    Dividend Yield For The Downturn

    High-dividend stocks make excellent bear market investments, but the payouts aren't a sure thing.
  7. Mutual Funds & ETFs

    The Top 3 ETFs to Track the Dow Jones Industrial Average for 2016

    Learn about exchange-traded funds that track the Dow Jones Industrial Average. Read how compounding impacts the results of inverse and leveraged ETFs.
  8. Stock Analysis

    Are Dow Stocks Better Than S&P Stocks?

    When it comes to the performances of the DJIA and S&P 500, what matters is the valuation of companies, and at the moment, many of the DJIA components, who also belong to the S&P 500, ...
  9. Economics

    A History Of Wall Street Profitability

    Learn about the performance of the Dow Jones Industrial Averages (DJIA) through the decades.
  10. Options & Futures

    Why The Dow Matters

    Although the DJIA only includes 30 stocks, it can tell you a lot about the market as a whole.
RELATED FAQS
  1. How many components are listed on the Dow Jones Industrial Average?

    Learn how many components comprise the Dow Jones Industrial Average and understand the stock index's origins and how it is ... Read Answer >>
  2. What is the difference between the Dow and the Nasdaq?

    Because of the way people throw around the words "Dow" and "Nasdaq," both terms have become synonymous with "the market," ... Read Answer >>
  3. Which food and beverage stocks pay the highest dividends?

    Learn which food and beverage firms have the highest dividend yields and why investors consider companies' financial health ... Read Answer >>
  4. Which retail stocks pay the highest dividends?

    Learn which retail stocks pay the highest dividends as measured in terms of dividend yield and why investors need to carefully ... Read Answer >>
  5. Can you buy shares in the Dow Jones Industrial Average (DJIA)?

    Invest in the Dow Jones Industrial Average index through index funds or ETFs. Read Answer >>
  6. Which stocks in the wholesale sector pay the highest dividends?

    Learn which wholesale sector firms pay the highest dividends and why investors analyze companies' financial health when dividend ... Read Answer >>
Hot Definitions
  1. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  2. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  3. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  4. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  5. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  6. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
Trading Center