S&P 500: ‘Dogs Of The Dow’ Stocks Just Paid Off; Here The Top 10 For 2023 Investor’s Business Daily

Revenue decreased by 18% to $11.9 billion and missed expectations by nearly $200 million. Dow Inc. is a standalone company that was spun off from its former parent, DowDuPont. That company has broken into three publicly traded, standalone parts, with the former Materials Science business becoming the new Dow Inc. On January 27th, 2023, Chevron reported financial results for the fourth quarter and full year.

When it comes to an investing strategy, most investors will agree that simple is better. And one way for any investor to invest in blue chip stocks is to invest in stocks that are listed on the Dow Jones Industrial Average (DJIA). The Dogs of the Dow refers to the 10 highest yielding stocks on the Dow Jones Industrial Average (DJIA). Investors can use these stocks to execute a profitable strategy that attempts to beat the DJIA average by tilting their portfolio to high-yield dividend stocks. Looking ahead, the 2023 Dow Dogs of the Dow strategy may continue to outperform the DJIA – but it might not.

Remembering the Dogs of the Dow

Grab the 2023 list of all 59 monthly dividend stocks, with each company researched and ranked. Amgen is yielding 3.2%, and the dividend is growing at a double-digit rate. The stock is probably fairly valued, but a successful acquisition of Horizon could mean future growth. Verizon is dirt cheap, trading at a price-to-earnings (P/E) ratio of only 7.7x, well below the 5-year and 10-year ranges. As a result, Verizon is an excellent choice for investors seeking income at a reasonable price. Verizon is a dividend grower, though modestly so, at an average annual rate of 2.4%.

• Please consult with a licensed investment professional before you invest your money.
• The strategy is also meant to be a long-term strategy requiring less effort than constant trading.
• The company has found themselves wrapped up in thousands of lawsuits, over 200,000 to be more precise, in regards to earplugs that were sold by one of the company’s subsidiaries.
• After that they simply hold those stocks for the entire year and repeat the process at the beginning of the following year.
• If it does, it will likely be due to the attractive dividend yields that these stocks offer.

Intel designs and manufactures its own chips, while AMD designs and outsources manufacturing to TSMC. Lastly, clients are increasingly developing their own chips and outsourcing manufacturing to fabs like TSMC or Samsung. https://forexarticles.net/if-you-can-millennials-can-get-rich-slowly/ Along these lines, VillageMD recently acquired Summit Health for primary care, Shields for specialty care and CareCentrix for post-acute care. Whether this strategy will work or not, though, will take time to determine.

Closing Thoughts on Dogs of the Dow

For example, you allocate $10,000 to each DD, resulting in a $100,000 DD portfolio. As DD stocks move up and down, you can reallocate to bring things back into alignment. XOM might at some point be worth $15,000 while Pfizer is worth $5,000.

• And while you might consider this strategy for your portfolio in 2023, before making any changes, make sure you talk to your financial advisor.
• That said, Intel introduced Sapphire Rapids in its Xeon series of chips for data centers.
• And one way for any investor to invest in blue chip stocks is to invest in stocks that are listed on the Dow Jones Industrial Average (DJIA).
• Intel designs and manufactures its own chips, while AMD designs and outsources manufacturing to TSMC.
• While some of the stocks are the same, there are several new additions.

In fact, in 2022 the Dow Dogs of the Dow outperformed the Dow Jones Industrial Index, returning +2.2% versus a -8.8% for the DJIA. This strong performance can be attributed to DJIA components like IBM, Chevron, Merck, Amgen and Coca-Cola, which all posted gains last year. Chevron, for example, jumped a staggering 53% in addition to yielding 4.6%. As you know, the Dow Jones Industrial Index (the Dow or DJIA) is one of the most widely-followed benchmark for tracking U.S. stocks and stock market performance. It is made up of 30 large publicly traded companies in the U.S., which are selected by Dow Jones & Company based on their market capitalization, liquidity, and industry sector representation.

Dogs of the Dow 2023 FAQ

It includes the Sure Dividend Newsletter for dividend growth stocks. The Sure Dividend Retirement Newsletter for high-yield, REIT, and MLP stocks. One aspect of first quarter returns is the fact a handful of stocks contributed to the market’s overall positive performance. Keep in mind that DoD is an income strategy (dividend paying) rather than growth strategy. Be sure that your investment objectives align before investing in DoD.

If you’re looking to get started in the stock market but don’t know where to begin, consider the Dogs of the Dow strategy. Created in 1896 by Charles Dow, the “Dow” is an index that tracks the performance of the 30 largest NYSE and NASDAQ companies. Since its inception, the Dow Jones has become arguably the most popular index and is the most common metric for measuring the overall health of the U.S stock market.

Does the Dogs of the Dow Strategy Work?

For example, the annualized return was about 9.2% compared to approximately 16.0% for the S&P 500 Index in the past decade through 2021. Another analysis of returns from 2008 to 2018 indicates the strategy generally works. For example, in 2008, the Dogs of the Dow would have underperformed the DJIA. But it would have outperformed the DJIA in eight out of ten years during the period.

Usually, a stock on the Dogs of the Dow list is undervalued compared to the broader market. It follows a strategy of investing in temporarily undervalued stocks. The investing strategy requires you to have equally weighted positions in the ten Dogs of the Dow.