This Time-Tested Dividend Strategy Is Beating the Market - 8/11

How the Dogs Have Performed Over the Years

Despite its simplicity, the Dogs of the Dow strategy has beaten the broader market in several years—and often delivers consistent, high-yield income even when it lags slightly in total return.

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  2022 was a brutal year for markets. The NASDAQ lost 33%, the S&P 500 fell 19%, and the Dow dropped 9%. But the Dogs of the Dow held up better: while their prices collectively fell 1.6%, the high dividends helped push total return to +2%. In a bear market, that’s a clear win.

  
  


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  In 2023, the Dogs underperformed slightly, returning 10.1% compared to the Dow’s 14.4%. But again, with strong dividend payouts and appreciation in many of the stocks, it was still a profitable year.

  
  


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  Going back further:

  
  
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    2021: Dogs returned 16.3%.

    
    
  
  
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    2019: Up 20%.

    
    
  
  
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    2018: Returned 1%, while the Dow fell nearly 6%.

    
    
  
  
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    2017: Up 19%.

    
    
  
  
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    2016: Up 16%.

    
    
  
  
  
  

It’s not a flashy or complicated strategy, but it’s often effective—and highly attractive for dividend-focused investors, especially during uncertain economic conditions.

2025 Dogs of the Dow – Strong Performance So Far

Let’s look at the current lineup for 2025 and how the strategy has been playing out.

Here are the 10 Dogs of the Dow for 2025, along with their current year-to-date performance and dividend yields:

1. Company: Verizon (SYM: VZ)

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  Yield: 6.3%

  
  


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  Start-of-Year Price: ~$38

  
  


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  Current Price: ~$43.12

  
  


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  Performance: +13.5%

  
  

Verizon has been a long-time member of the Dogs list due to its consistently high yield and conservative valuation. The company continues to pay a generous dividend, and the recent rebound in share price is a welcome bonus for long-term holders.

2. Company: Chevron (SYM: CVX)

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  Yield: 4.42%

  
  


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  Start-of-Year Price: ~$142

  
  


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  Current Price: ~$155

  
  


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  Performance: +9.2%

  
  

Oil prices may be volatile, but Chevron remains a cash-generating machine. The stock’s yield remains high, and the price appreciation has added meaningful total return in 2025.

3. Company: Johnson & Johnson (SYM: JNJ)

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  Yield: 3.01%

  
  


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  Start-of-Year Price: ~$142

  
  


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  Current Price: ~$172

  
  


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  Performance: +21.1%

  
  

JNJ is a classic defensive stock with strong cash flow and a wide economic moat. This year, it’s also showing notable price strength, with over 20% gains year to date—on top of a respectable yield.

4. Company: Amgen (SYM: AMGN)

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  Yield: 3.32%

  
  


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  Start-of-Year Price: ~$258

  
  


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  Current Price: ~$308

  
  


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  Performance: +19.3%

  
  

Amgen is one of the few biopharma giants on the list, and it’s had a solid run so far this year. It offers a good mix of growth potential and income stability.

5. Company: Merck (SYM: MRK)

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  Yield: 4.02%

  
  


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  Start-of-Year Price: ~$98

  
  


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  Current Price: ~$83.40

  
  


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  Performance: -14.9%

  
  

Merck is the biggest laggard in this year’s list. However, its high yield offers some cushion, and it may be a value play if sentiment shifts in the second half of the year.

6. Company: Coca-Cola (ETF: KO)

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  Yield: 2.88%

  
  


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  Start-of-Year Price: ~$61

  
  


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  Current Price: ~$70.76

  
  


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  Performance: +16%

  
  

A consumer staple giant with a global footprint, KO continues to be a dependable name for dividend investors. This year, it’s delivering both yield and upside.

7. Company: IBM (ETF: IBM)

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  Yield: 2.72%

  
  


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  Start-of-Year Price: ~$215

  
  


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  High of the Year: ~$290

  
  


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  Performance: +35% (from low to high)

  
  

IBM has been one of the surprising winners in 2025. As it leans further into AI and hybrid cloud, investor sentiment is improving—making it one of the top performers among the Dogs.

8. Company: Cisco (ETF: CSCO)

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  Yield: 2.3%

  
  


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  Start-of-Year Price: ~$58

  
  


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  Current Price: ~$71.25

  
  


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  Performance: +22.8%

  
  

Cisco continues to benefit from enterprise demand, AI infrastructure buildouts, and strong cash flow generation. Solid growth plus steady income is an attractive combo.

9. Company: McDonald’s (ETF: MCD)

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  Yield: 2.31%

  
  


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  Start-of-Year Price: ~$293

  
  


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  Current Price: ~$306

  
  


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  Performance: +4.4%

  
  

McDonald’s is a reliable dividend grower, and while it’s not a standout gainer this year, it remains a safe-haven stock with global exposure.

10. Company: Procter & Gamble (ETF: PG)

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  Yield: 2.76%

  
  


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  Start-of-Year Price: ~$164

  
  


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  Current Price: ~$158

  
  


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  Performance: -3.7%

  
  

PG has lagged a bit in 2025, but as a core defensive name with a long dividend history, it remains a foundational holding in many portfolios.