The 2022 Dogs of the Dow beat the major indices, even in a “ruff” year.
Sorry, terrible pun.
While the Dogs of the Dow stocks fell 1.6% on the year, once you add in the dividend payouts, the Dogs returned 2% on the year.
And while 2% may not sound like a big win, consider this.
In 2022, one of the worst years on record since 2008, the NASDAQ lost 33%. The S&P 500 lost 19%. The Dow Jones lost about 9%. That 2% doesn’t look so bad now, does it?
Now, as we get deeper into 2023, we expect for the Dogs to do even better. To participate, you simply buy the top 10 highest-yielding stocks on the most beaten-down stocks on the Dow Jones. A year from now, you close them out – hopefully for wins – and repeat with a new batch.
For some history: In 2021, the Dogs of the Dow returned about 16.3%. While 2020 wasn’t a great year for the Dogs, most other years have done very well. In 2019, the Dogs were up 20%. In 2018, they were up about 1%, but still beat the Dow, which fell close to 6%. In 2017, the dogs were up 19%. In 2016, they were up 16%.
So far, here’s how the 2023 Dogs are performing:
- Verizon (VZ) – which has a current yield of 7.3% — is at breakeven.
- Dow Inc. (DOW) – with a yield of 5.44% — ran from $49.99 to $51.49 so far.
- Intel (INTC) – with a yield of 1.7% – ran from $26.72 to $29.53.
- Walgreens (WBA) – with a yield of 6.16% – fell from about $37 to $31.16.
- 3M (MMM) – with a yield of 6.1% – fell from about $120 to $98.36.
- IBM (IBM) – with a yield of 5.3%- fell from about $140 to $125.63.
- Amgen (AMGN) – with a yield of 3.83% — fell from about $258 to $222.37.
- Cisco (CSCO) – with a yield of 3.28% — was up slightly from about $47.48 to $47.52.
- Chevron (CVX) – with a yield of 3.97% — fell from about $176 to $152.09.
- JPMorgan Chase (JPM) – with a yield of 3.1% — ran from about $134 to $138 so far.
Granted, that’s nothing to write home about just yet. But with the dividends, the Dogs appear to be doing better than most of the major averages.