Dogs of the Dow is a financial investment strategy that compares dividends to find the 10 highest yielding Dow Jones stocks at the end of the year. The theory is that the dividends are more reliable than stock prices and high dividends are thought to suggest that a company is ready for a financial rebound. The Dogs of the Dow strategy doesn't always hold true, the Dogs of the Dow for 2007 are down an average of 41% to the Dow's 34%.CNBC: 2009 Dogs of the Dow (December 31, 2008)
Dogs of the Dow Going Into 2009
- Bank of America Corp. (BAC)
- General Electric Co. (GE)
- Pfizer Inc. (PFE)
- E l du Pont de Nemours and Co. (DD)
- ALCOA Inc. (AA)
- AT&T Inc. (T)
- Verizon Communications (VZ)
- Merck and Co. Inc. (MRK)
- JP Morgan Chase and Co. (JPM)
- Kraft Foods Inc. (KFT)CNBC: 2009 Dogs of the Dow (December 31, 2008)
References
Fast Facts
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Fact:
Dogs of the Dow is a popular financial strategyCNBC: 2009 Dogs of the Dow (December 31, 2008)
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Fact:
Dogs of the Dow strategy is also known as High Yield 10CNBC: 2009 Dogs of the Dow (December 31, 2008)
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Fact:
The strategy compares dividends and looks for stocks offering high dividendsCNBC: 2009 Dogs of the Dow (December 31, 2008)
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Fact:
High dividends are thought to suggest that a company is poised for a reboundCNBC: 2009 Dogs of the Dow (December 31, 2008)
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Fact:
Some analysts suggest dropping the lowest price/highest yielding Dog out of concern that the company may be in serious troubleCNBC: 2009 Dogs of the Dow (December 31, 2008)
