Once upon a time, it was hard to find an income strategy much better than the idiot-proof “Dogs of the Dow.”
And hey, in this wild market in which the S&P can drop 2% in a couple of hours, this sounds pretty good. Let’s buy some blue chips and earn 3x more income than the broader market.
Which Dogs are paying the biggest dividends for 2022? As a group these battleship businesses are paying 3.8% versus just 1.2% for the broader market. We’ll review them in a moment. First, the Dogs of the Dow rules:
- Rule 1: After the final trading day of the year, identify the 10 highest-yielding stocks in the Dow.