Meet the 2024 Dogs of the Dow

After the bear market in 2022, 2023 brought a pleasant surprise for many investors. Big gains in the Nasdaq Composite and S&P 500 led to closes for the year near record levels.

The Dow Jones Industrial Average (DJINDICES: ^DJI) actually managed to set all-time records on several occasions late in December. However, its gains of roughly 14% for the year were smaller than what those who invested in broader indexes earned. And for those who followed a popular strategy called the Dogs of the Dow, 2023 was even more disappointing, as it underperformed the Dow significantly.

Yet, investors are hopeful that 2024 will bring a return to the past successes of the Dogs of the Dow strategy. Below, you’ll see the 10 stocks that qualify as the 2024 Dogs of the Dow, and you’ll also get a preview of what some of these companies are looking forward to in the coming year.

The 2024 Dogs of the Dow

Data source: DogsoftheDow.com.

The basics of the Dogs of the Dow strategy

Many investors love the Dogs of the Dow because it’s so easy to follow. All you have to do is look which 10 stocks among the 30 Dow Jones Industrials components have the highest dividend yield on the last day of the year. Then, invest an equal amount in each of those 10 top-yielding stocks, and hold those investments through the end of the subsequent year.

When the end of the year comes, you can either abandon the Dogs of the Dow strategy entirely, or you can repeat it for the following year. If you choose to stick with the Dogs of the Dow, you’ll just need to rebalance to account for relative performance of the 10 stocks, along with replacing any stocks whose yields have fallen below the threshold for Dogs of the Dow eligibility with those whose yields have risen sufficiently to take their place.

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