Category Archives: Dogs of the Dow

In our January 2, 2022 posting on the Dogs of the Dow, we said the following:

• "In the coming year, we’re expecting the market to underperform generally and accept that there is no real 'safe haven.'”
• "As shown in the 2017 article, the assumption is that if the year ends in the negative, these two categories will lead the way down. Meanwhile, if the year ends on the downside, the high yield stocks should have the market beating performance."

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It has been asked what the total return for the respective Dogs of the Dow (high yield stocks) would be compared to the top Low Yield stocks, that we favor, if they were compounded over time.

In this series, we’ll identify the total return of the portfolio, as best we can, based on the Dogs of the Dow strategy as outlined in Michael O’Higgins book Beating the Dow.  This strategy requires that the portfolio is switched out each year with a new set of ten high yielding stocks from the Dow Jones Industrial Average.

Additionally, we will list the total return, within the limits of the available data, of the high yield and low yield stocks when ranked in the highest and lowest selecting the top ten in each list.

We are posting the total returns of the stocks from December 31, 1991 to the intraday price as of December 10, 2020.

As we have observed in the past, it becomes very challenging to generate total returns for High Yield stocks as part of the Dogs of the Dow strategy simply because so many of them go bankrupt.  Four of the listed high yield stocks went bankrupt (Sears, General Motors, Woolworth, Eastman Kodak).

See Also:

• 1992 Dogs of the Dow: One Year Returns
• 1991 Dogs of the Dow Total Return
• 2019 Dogs of the Dow Returns

Notes:

• Union Carbide bought by Dow Chemical (DD)
• AlliedSignal bought Honeywell (HON) and assumed Honeywell’s name and potentially their share data.
• Texaco was bought by Chevron (CVX)