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With the Dow coming off of a historic winning streak last week, below we check in on the performance of the index versus the Dogs of the Dow. The Dogs of the Dow is a stock-picking strategy that invests in the index members with the highest dividend yields at the end of a year, and holds them through the end of the next year.
On a total return basis, the Dow’s recent winning streak has been a benefit to both the overall index and the Dogs alike. That said, the gains to the former have brought the index up near 2022 highs on a total return basis, while the Dogs of the Dow has much further to go given the overall weakness of dividend-oriented equities recently.
In the table below, we show the returns of this year’s Dogs of the Dow and all other individual Dow members. The Dogs of the Dow are host to some of the stocks with the worst performance this year like Verizon (VZ) and Chevron (CVX), however, there are also a couple of big winners like Intel (INTC) which has returned nearly 42% YTD or JPMorgan Chase (JPM) which has nearly posted a 20% return.
However, the biggest gains in the index have come from non-Dogs. In fact, the largest gains this year have been from those with the lowest or no dividend yields at the end of last year like Boeing (BA), Salesforce (CRM), or Apple (AAPL).
Editor’s Note: The summary bullets for this article were chosen by Seeking Alpha editors.
