Objective

The Dogs of the Dow folio was developed for investors seeking a moderately aggressive risk level from DJIA companies that pay high dividends.

Strategy

The Dogs of the Dow folio, as the name implies, utilizes a strategy popularized by Michael O’Higgins in 1991 which recommends selecting stocks from the Dow Jones Industrial Average (DJIA) whose dividend is the highest relative to their price.

Proponents of the strategy argue that large “blue chip” companies do not alter their dividend to reflect trading conditions and, therefore, the dividend is a measure of the average worth of the company. However, stock prices may fluctuate with the business cycle. This could mean that companies with a high dividend yield are near the bottom of their business cycle and are likely to see their stock price increase faster than low-yield companies.

Last Updated: December 2, 2016

Category: Strategy
Inception Date: 2000-04-05 00:00:00.0
Date Funded: 2009-08-28*

Folio S&P 500 Total Return
One-Month 5.88% 4.75%
Three-Month 3.6% 1.09%
Year-to-Date 23.3% 9.44%
One-Year 24.03% 7.71%
Three-Year (Annualized) 11.55% 9.05%
Five-Year (Annualized) 17.51% 14.41%
Since Inception 8.52% N/A
Volatility 14.42% 13.86%

Past performance is no guarantee of future results.
See how returns are calculated

* Returns reflect model performance from the Inception Date to the Date Funded, and funded performance since the Date Funded, if funded. Your returns may deviate significantly from the values displayed here, due to many factors, including how long after a strategy has been updated that you place orders to update your holdings.

#SymbolCompanyWeight
(% of Folio)
1BAboeing co10.00%
2CATcaterpillar inc del10.00%
3CSCOcisco sys inc10.00%
4CVXchevron corp new10.00%
5GEgeneral elec co10.00%
6IBMinternational business machs10.00%
7KOcoca cola co10.00%
8PFEpfizer inc10.00%
9VZverizon communications inc.10.00%
10XOMexxon mobil corp10.00%

Steps to Create This Folio

  1. The stocks in the Dow Jones Industrial Average (DJIA) were sorted according to their dividend yields (annual dividends ÷ stock price).
  2. We selected the 10 stocks with the highest dividend yield.
  3. We equally weighted all securities in the folio.

Number of Securities

There are generally 10 securities in the folio.

Update Frequency

Quarterly.

If the characteristics of the folio have changed substantially, the securities included may change. Also, corporate actions, such as a merger, or other events may cause changes to the securities held at any time. Your returns may deviate significantly from the values displayed here, due to many factors, including how long after a folio has been updated that you place orders to update your holdings.