Dogs of the Dow theory, used as an investment strategy, was first popularized by Michael O’Higgins in his book Beating the Dow, which was published back in 1992.  The theory is based on the purchase of high dividend yield stocks that are members of the Dow Jones Industrial Average. The strategy’s simplicity is one of its most attractive attributes. The Dogs of the Dow are the 10 of the 30 companies in the Dow Jones Industrial Average (DJIA) with the highest dividend yield. In the Dogs of the Dow strategy, the investor shuffles around his or her portfolio, adjusting it so that it is always equally allocated in each of these 10 stocks.

Dogs of the dow book

European Dogs of the Dow 2021

Our European Dogs of the Dow version is based on the Euro Stoxx 50 index. This is Europe’s leading blue-chip index for the Eurozone, provides a blue-chip representation of supersector leaders in the region. The index covers 50 stocks from 8 Eurozone countries: Belgium, Finland, France, Germany, Ireland, Italy, the Netherlands, and Spain.

The table lists the 10 European dogs of the dow for 2021 including their dividend yield as of 12/31/20. The average dividend yield for this top-10 is 4.68%, more than double the 2.06% for the Euro Stoxx 50 index.

European dogs of the dow

Three out of the ten dogs is also a European dividend aristocrat. Remarkable is the change compared to last year’s list, only Total made it again to the 2021 edition.


Other Sources of Dividend Investment Ideas

There are several lists to quickly screen for businesses that regularly pay rising dividends.

Next to selecting the right dividend stocks, important principles for successful long-term investing are Disciple, Diversification, Defensive & indeed Dividend. Read more about this in our free e-book.

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