Morning Watchlist

    The Dividend Play That’s Worked for Decades - 9/1

    Ian Cooper
    Monday, September 1, 20255 min read
    The Dividend Play That’s Worked for Decades - 9/1

    This is One of the Best Yearly Dividend Opportunities to Jump Into


    Every year, one of the simplest and most effective income strategies is the Dogs of the Dow.


    The strategy is straightforward: you buy a basket of the ten highest-yielding underperformers on the Dow Jones Industrial Average at the start of the year, hold them, and then sell at the end of the year. The idea is that these beaten-down but high-yielding stocks often recover while continuing to pay out strong dividends, offering both appreciation and income.


    While the 2024 Dogs of the Dow didn’t light up the scoreboard compared to the broader market, they still rewarded patient investors with steady dividend payouts. And that’s the beauty of this approach—it often shines brightest during uncertain markets.

    Why the Dogs Strategy Works


    The Dogs of the Dow concept has been around for decades, popularized by Michael O’Higgins in the early 1990s. The premise is simple: blue-chip companies in the Dow that have stumbled in price but continue to pay above-average dividends are often set up for a rebound. These are household-name businesses with strong fundamentals that may just be out of favor temporarily.


    Buying them at depressed valuations not only locks in a higher yield, but also positions investors for potential recovery when sentiment shifts. In other words, you’re getting paid to wait.








    A Look Back at the Results


    Over the years, the Dogs strategy has proven surprisingly resilient.



    • 2024 – The Dogs underperformed the broader indices, but dividends still provided respectable returns.




    • 2023 – The Dogs returned an average of 10.1%, compared to the Dow’s 14.4%. While they lagged, dividends helped narrow the gap.




    • 2022 – A challenging year for markets, but the Dogs delivered a 2% return when dividends were included. By comparison, the NASDAQ plunged 33%, the S&P 500 sank 19%, and the Dow lost nearly 9%.




    • 2021 – A much stronger showing, with the Dogs returning about 16.3%.




    • 2019 – One of the best recent years, with a 20% gain.




    • 2018 – The Dogs eked out a 1% gain, which still beat the Dow’s 6% decline.




    • 2017 – The Dogs returned 19%.




    • 2016 – The Dogs returned 16%.




    Clearly, while the strategy doesn’t outperform every year, its consistency—especially when markets struggle—makes it an attractive income play.



    Millionaire Publishing


    Final hours to grab this for $1


    The $1 Labor Day deal on my Midnight Millionaire masterclass ends tonight.


    Inside, I’ll show you how I trade a specific kind of setup that can show movement overnight… 


    While most people are sleeping.


    This isn’t some complicated day trading system. 


    You don’t need to watch the market all day.


    It’s just one simple trade. One strategy. And one weekend to learn it for $1.


    👉 [Grab access before it’s gone]


    I’ve been using this for years. 


    So have many of my top students. 


    If you’ve been waiting to check it out, now’s the time.








    How the 2025 Dogs Are Performing


    This year’s Dogs are already putting up impressive numbers.



    • Verizon (VZ): Yielding 6.17%. Started the year near $38, now trading around $43.93.




    • Chevron (CVX): Yielding 4.3%. Climbed from about $142 to $159.




    • Johnson & Johnson (JNJ): Yielding 2.96%. Rallied from $142 to $175.45.




    • Amgen (AMGN): Yielding 3.33%. Jumped from about $258 to $285.




    • Merck (MRK): Yielding 3.9%. Slipped from $98 to $83.40.




    • Coca-Cola (KO): Yielding 3%. Rose from $61 to $69.10.




    • IBM (IBM): Yielding 2.73%. Ran from $215 to $290.




    • Cisco (CSCO): Yielding 2.36%. Gained from $58 to $69.43.




    • McDonald’s (MCD): Yielding 2.27%. Moved from $293 to $312.




    • Procter & Gamble (PG): Yielding 2.72%. Declined from $264 to $155.65.




    Eight out of ten stocks are up so far this year, with several delivering both strong capital appreciation and steady income. Even with two laggards, the group as a whole is proving its value.

    Why It Still Matters for Investors


    The Dogs of the Dow aren’t meant to be flashy. They’re designed for stability, dividends, and the potential for upside in some of the market’s most established companies.


    For income investors, the strategy provides several advantages:



    1. High yields, locked in early. You start the year with some of the Dow’s strongest dividend payers.




    2. Simplicity. The strategy doesn’t require constant trading or deep research.




    3. Diversification. You get exposure across sectors, from healthcare to energy to tech.




    4. Resilience. Historically, the Dogs have held up better than high-growth stocks in down markets.




    Even in years when the Dogs underperform, investors are still rewarded with dividends, which often cushion the downside.



    Mode Mobile


    Apple’s Starlink Update Sparks Huge Earning Opportunity


    mode


    Apple just secretly added Starlink satellite support to iPhones through iOS 18.3.


    One of the biggest potential winners? Mode Mobile.


    Mode’s EarnPhone already reaches 50M+ users that have earned over $325M, and that’s before global satellite coverage. With SpaceX eliminating dead zones worldwide, Mode's earning technology can now reach billions more in unbanked and rural populations worldwide.


    Their global expansion is perfectly timed, and you still have a chance to invest in their pre-IPO offering before it closes.


    50,000 investors participated in Mode’s previously sold out offering and limited space remains in the current round.


    With their recent 32,481% revenue growth and newly reserved Nasdaq ticker, Mode is one step closer to a potential IPO.


    Join 50,000+ investors before Mode’s pre-IPO offering closes.

    Found this helpful? Share it with others.

    Written by Ian Cooper

    Our Flagship Publication

    Discover Great Companies Trading at a Discount

    Join Behind the Markets