5 'Dogs of the Dow' Stocks Poised to Outshine the Broader Market Once Again

investing.com:

The Dogs of Dow strategy, created by Michael O'Higgins and detailed in his book «Beating the Dow,» was initially conceived for companies listed on the Dow Jones Industrial Average.

However, it's applicable beyond North America, extending to European stock market indexes.

The methodology involves selecting the 10 companies with the highest dividend yield at the close of the last trading session of the year.

Once identified, an equal number of shares from each of these 10 companies are purchased and held throughout the entire year.

From 1957 to 2003, spanning 46 years, this strategy demonstrated an average annual return of +14%, surpassing the Dow Jones' average annual return of +11% during the same period.

In more recent times, from 2010 to 2017, the strategy consistently outperformed the Dow Jones.

For the year 2024, the stocks constituting the Dogs of Dow strategy, along with their respective dividend yields, are as follows: [List of stocks and dividend yields].

Also interesting is the ALPS Sector Dividend Dogs ETF (NYSE:SDOG), which equally weights the five stocks in each of the 11 S&P 500 sectors with the highest dividend yields. It's sort of like a modified Dogs of the Dow.

Let's take a look at some of them using the InvestingPro professional tool to get some interesting data.

Walgreens is a pharmaceutical company that was founded in 1909 and is headquartered in Deerfield, Illinois.

On March 12, it pays a dividend of $0.25 per share, and to receive it you must own shares before February 16. The dividend yield is +4.30%.

Source: InvestingPro

On March 27 it presents results and is expected to increase revenues by +2.08% and by 2024 by +3.5%.

Source: InvestingPro

CEO Timothy Wentworth disclosed the purchase of 10,000