What is the Dogs of The Dow Strategy?

Share Post: facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.

When it comes to investing there are many strategies, views, and opinions. In many ways none of these are wrong, they are just different. It is important to find investments that are aligned with your views, time horizon, and risk tolerance while remaining committed to your process and making adjustments as needed.

One such strategy that has been around for roughly thirty years now is the Dogs of the Dow. The process around this strategy is to invest in the ten highest yielding stocks of the Dow Jones Industrial Average (DJIA) at the beginning of the year and then rebalancing at the beginning of the following calendar year. One key consideration is to make sure you are rebalancing after you have held the group of stocks for twelve months and one day so any gains will be considered long term in nature, rather than short term if you are using this in a non-qualified account.

When owning stocks your total return comes from a combination of the income received from dividends (yield) and any capital appreciation/depreciation. As an example, if you buy a company that provides a dividend yield but its price is flat for the year you still will experience a positive overall return because of the yield. The dividend (yield) will provide you with a potential cushion should the price of the stock decrease as well.

The Dogs of The Dow is a strategy that attempts to take advantage of the yields of the companies in the Dow by buying the highest-paying dividend stocks available. This is by no means a strategy that works every year. It is a way to buy blue-chip companies that may not be trading at their highs but provide an attractive yield. This strategy is one that can be considered for investors that have the tolerance for monies being invested equally across ten equities. In most cases, this would not make sense for all assets in your portfolio because of it being heavily concentrated in ten securities. It could make sense for a portion of your investable assets.

We would be happy to discuss the Dogs of The Dow Strategy and how it may fit into your portfolio. Just contact us, Mitlin Financial, at (844) 4-MITLIN x112 to schedule a time to discuss. Be sure to share this article with friends, family, and business acquaintances who might be interested too. We look forward to helping you, and them, get on the right path and stay there.

This article represents the opinion of Mitlin Financial Inc. It should not be construed as providing investment, legal and/or tax advice. Investing involves risk, including possible loss of principal. No strategy assures success or protects against loss. To determine what may be appropriate for you, consult your financial advisor.

facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.
Share Post: facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.


Matterhorn Fit with Ryan Vesce, Episode #118

Ryan Vesce graduated from Cornell University in 2004 and went on to play 14 years professionally—over 700 games—across the NHL, AHL, KHL, and Europe. He is well known for his leadership, mental toughness, work ethic, and tireless drive to improve his game. Ryan had access to advanced healin …

Carson Investment Research’s Outlook ’23: The Edge of Normal

At long last, The Carson Investment Research team is proud to officially release our 2023 Market and Economic Outlook, aptly titled Outlook ’23: The Edge of Normal. You can download the whitepaper here. As you are all painfully aware, 2022 wasn’t pretty for investors – it was the first year …

What Documents You Should Provide to Your Tax Preparer

Mike Valenti, CPA, CFP®, Director of Tax Planning Tom Fridrich, JD, CLU, ChFC®, Senior Wealth Planner It’s January, so it’s officially tax season! One of the most common client questions heard by tax preparers is, “So, what do you need from me?” The short answer to that question is often, “ …

The Designer’s Creative Studio with Theron Skees, Episode #117

Theron Skees is a highly adaptive, solution-oriented creative executive with 30 years of experience assembling and leading multi-disciplined teams for both domestic and international projects in the Themed Entertainment Industry. Theron is a veteran of Walt Disney Imagineering and he has le …

1 2 3 132 133 134

Get in Touch

In just 15 minutes we can get to know your situation, then connect you with an advisor committed to helping you pursue true wealth.

Schedule a Consultation

TweetsFollow Us