Most of us are familiar with the Dogs of the Dow strategy.
The 2024 Dogs appear to be doing well so far.
The 2023 Dogs of the Dow returned an average of 10.1%, which came in below the 14.4% return on the Dow Jones’ Industrials. Still, with the appreciation in most of the 2023 Dogs coupled with dividends, investors still did well overall.
The 2022 Dogs of the Dow beat the major indices, even in a rough year. In fact, while the Dogs of the Dow stocks fell 1.6% on the year, once you add in the dividend payouts, the Dogs returned 2% on the year. And while 2% may not sound like a big win, consider that, in 2022, one of the worst years on record since 2008, the NASDAQ lost 33%. The S&P 500 lost 19%. The Dow Jones lost about 9%.
While that’s a great strategy to use, we can also trade the Dogs of the S&P 500, which could include top dividend stocks, such as:
- AES Corp. (AES), which carries a yield of 5.5%
- Archer Daniels Midland (ADM), which yields 3.94%
- Devon Energy (DVN), which yields 4.65%
- Hormel Foods (HRL), which yields 3.66%
- Pfizer (PFE), which yields 6.46%
- Walgreens Boots Alliance (WBA), which yields 10.6%
- Intel (INTC), which yields 2.43%
- Celanese (CE), which yields 4.09%
Not only can investors collect dividends from each of these companies, but they can also benefit from the potential price appreciation from each of these oversold stocks.
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