Dogs Of The Dow

AAA

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.

INVESTOPEDIA EXPLAINS '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. Blue Chip Indicator

    A formal gauge or measure of the performance of a selected group ...
  2. Blue Chip

    A nationally recognized, well-established and financially sound ...
  3. Mechanical Investing

    Buying and selling stocks according to a screen based on predetermined ...
  4. Theoretical Dow Jones Index

    A method of calculating a Dow Jones index (most often the DJIA) ...
  5. Portfolio

    A grouping of financial assets such as stocks, bonds and cash ...
  6. Dow Jones Industrial Average - ...

    The Dow Jones Industrial Average is a price-weighted average ...
Related Articles
  1. How Now, Dow? What Moves The DJIA?
    Bonds & Fixed Income

    How Now, Dow? What Moves The DJIA?

  2. Barking Up The Dogs Of The Dow Tree
    Investing Basics

    Barking Up The Dogs Of The Dow Tree

  3. January Effect Revives Battered Stocks
    Options & Futures

    January Effect Revives Battered Stocks

  4. Don't Dump On The Dogs
    Investing

    Don't Dump On The Dogs

comments powered by Disqus
Hot Definitions
  1. 80-10-10 Mortgage

    A mortgage transaction in which a first and second mortgage are simultaneously originated. The first position lien has an ...
  2. Passive ETF

    One of two types of exchange-traded funds (ETFs) available for investors. Passive ETFs are index funds that track a specific ...
  3. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another ...
  4. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  5. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center