One of the best end-of-year strategies is the Dogs of the Dow.
You simply buy 10 of the worst performing Dow stocks, which also carry dividends. By year end, you’ll cash out, and then play the next batch of Dogs of the Dow.
Here’s how the 2024 Dogs of the Dow are doing so far.
- With a yield of 3.23%, Amgen (SYM: AMGN) fell from about $281 to a recent high of $279.09.
- With a yield of 3.23%, IBM (SYM: IBM) ran from $157 to a recent high of $207.
- With a yield of 2.16%, 3M (SYM: MMM) ran from $89 to $130.
- With a yield of 11.58%, Walgreens (SYM: WBA) fell from about $25 to a recent low of $8.64.
- With a yield of 4.07%, Chevron (SYM: CVX) ran from $145 to $160.
- With a yield of 3.23%, Johnson & Johnson (SYM: JNJ) ran from about $153 to $153.68.
- With a yield of 2.76%, Cisco (SYM: CSCO) ran from about $49 to $58.
- With a yield of 6.36%, Dow Inc. (SYM: DOW) slipped from about $53 to $44.
- With a yield of 6.4%, Verizon (SYM: VZ) ran from about $36 to $42.32.
- With a yield of 3,13%, Coca-Cola (SYM: KO) ran from about $58 to $62.
Seven out of 10 are winners so far for 2024. Not only did investors profit from the appreciation, but also from the respectable dividends.
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%.
In 2021, the Dogs of the Dow returned about 16.3%. While 2020 wasn’t a great year for the Dogs, most other years have done very well. In 2019, the Dogs were up 20%. In 2018, they were up about 1%, but still beat the Dow, which fell close to 6%. In 2017, the dogs were up 19%. In 2016, they were up 16%.
