Dogs of the Dow is a strategy whereby you buy the top 10 yielding stocks in the Dow Jones every year, put equal balancing into them (10% of your money into each of the 10 stocks), and roll them over every year into the next batch of high yields.
The thinking behind this strategy is that these stocks have high yields because their prices have dropped, but since they are part of the respected Dow Jones index, they are probably still fundamentally sound (but this may not always be the case!)
For the year ending 2011, here are the highest yeilding Dow stocks:
For 2011, here are the Dogs of the Dow:
| Symbol | Company | Price | Yield | |
| NYSE / NASDAQ | The Dow stocks ranked by yield on 12/30/11 | on 12/30/11 | on 12/30/11 | |
| T | AT&T | 30.24 | 5.82% | |
| VZ | Verizon | 40.12 | 4.99% | |
| MRK | Merck | 37.70 | 4.46% | |
| GE | General Electric | 17.91 | 3.80% | |
| PFE | Pfizer | 21.64 | 3.70% | |
| DD | DuPont | 45.78 | 3.58% | |
| JNJ | Johnson & Johnson | 65.58 | 3.48% | |
| INTC | Intel | 24.25 | 3.46% | |
| PG | Procter & Gamble | 66.71 | 3.15% | |
| KFT | Kraft | 37.36 |
3.10% |
There is an ETN which seeks to replicate the performance of these stocks, its ticker is DOD.
DOD has a 0.75% expense ratio which works against you, it also does not pay a dividend, but it will replicate the performance of owning these 10 stocks.
Here is DOD vs the S&P over the past two years:
