Below is the performance of the individual Dow Jones Industrial Average constituents from December 29, 2017 to January 19, 2018.
Our breakdown of the top three stocks in the respective fundamental categories is illuminating in spite of the short time under review.
For whatever reason, the Dogs of the Dow are living up to their reputation. The chart above depicts the top three in the respective categories. Not only are the top three Dogs of the Dow underperforming all other categories, the top 10 Dogs of the Dow (+2.70%) are underperforming the Dow Jones Industrial Average (+5.50%) by half. Worse still, as pointed out in previous articles, the Dogs of the Dow cannot exceed the opposite picks, the low yield stocks.
It is early yet, but the data collected on the Dogs of the Dow strategy from 1996 to 2017 is clear, high yield might win in some years but not enough to warrant investment for the long term success against the Dow Jones Industrial Average.