The Dogs of the Dow is one of the simplest strategies to beat the market. This strategy buys and holds equal dollar amounts of the 10 highest-yielding dividend stocks of the Dow Jones Industrial Average for one calender year. After beating the Dow by 6.8% in 2011, the Dogs of the Dow underperformed by 0.2% in 2012 but came back in 2013 with 8.37% out-performance and an overall performance of 34.87% . The annual performance over 20 years is 10.8% and 12.5% even for the small dogs of the dow.
Performance Dogs of the Dow 2013
Below the details per stock of the 2013 Dogs of the Dow edition:
| Company | Initial Yield | Initial Price | 2013 Performance |
|---|---|---|---|
| AT&T | 5.34% | $33.71 | 9.74% |
| Verizon Communications | 4.76% | $43.27 | 18.61% |
| Intel | 4.36% | $20.62 | 30.86% |
| Merck | 4.2% | $40.94 | 26.84% |
| Pfizer | 3.83% | $25.08 | 26.21% |
| DuPont | 3.82% | $44.98 | 49.15% |
| Hewlett-Packard | 3.72% | $14.25 | 101.15% |
| General Electric | 3.62% | $20.99 | 37.88% |
| McDonald’s | 3.49% | $88.21 | 13.59% |
| Johnson & Johnson | 3.48% | $70.10 | 34.63% |
| Dow Jones Industrial Average | 13,104 | 26.5% | |
| Dogs of the Dow | 34.87% | ||
| Dogs Return vs. Dow (percentage points) | +8.37% |
Dogs of the Dow 2014
For a new start check here the Dogs for 2014 and the small Dogs:
| Company | Initial Yield | Initial Price | Small dog |
|---|---|---|---|
| AT&T | 5.23% | $35.16 | Yes |
| Verizon Communications | 4.31% | $49.14 | |
| Merck | 3.52% | $50.05 | |
| Intel | 3.47% | $25.96 | Yes |
| Pfizer | 3.4% | $30.63 | Yes |
| McDonald’s | 3.34% | $97.03 | |
| Chevron | 3.2% | $124.91 | |
| General Electric | 3.14% | $28.03 | Yes |
| Cisco Systems | 3.03% | $22.43 | Yes |
| Microsoft | 2.99% | $37.41 | |
| Dow Jones Industrial Average | 16,576 |
