- Canadian Tax Resource Blog - http://blog.taxresource.ca -

Is the Dogs of The Dow Stock Strategy Dead?

The “Dogs of The Dow” is a stock investing strategy that suggest you invest in the five top yielding stocks on the Dow Jones Industrial.  Every year you review your investments and again purchase the new top five yielding stocks.

Historically, this strategy has averaged an 18% annual rate of return on investment.  Not bad for an investment strategy that involved very little thought about the stocks?

Does it make sense now?

Given the state of the economy does this strategy still make sense?  Will the companies that are at the bottom of the Dow, still be around in the near future?

According to the website Dogs of the Dow [1], the current dogs include:

These companies seem strong enough to last the recession, but who knows for sure.

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