The Dogs of the Dow strategy remains one of the simplest and most enduring approaches for dividend-focused investors. Each year, the method identifies the 10 highest-yielding blue-chip stocks in the Dow Jones Industrial Average, under the assumption that these underperformers may rebound while continuing to pay attractive dividends.
The approach is straightforward:
Buy the Dogs at the start of the year. Hold until year-end. Collect dividends. Repeat.
And while the strategy doesn’t outperform the market every year, its long-term consistency continues to attract investors seeking stability, income, and potential value rotation.
🐶 A Look Back: How the Dogs Performed in Previous Years
Even though the 2024 Dogs of the Dow underperformed the broader indices, investors still enjoyed solid dividend income throughout the year. And historically, that steady dividend component often cushions downside and boosts total returns over time.
Here’s a snapshot of how the Dogs have done in recent years:
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2024: Underperformed, but dividends kept returns respectable.
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2023: The Dogs returned 10.1%, slightly below the Dow but still solid when combined with dividend income.
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2022: A standout year—while major indices suffered double-digit declines, the Dogs delivered a 2% total return, outperforming the Dow, S&P 500, and NASDAQ by a wide margin.
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2021: About 16.3% return.
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2020: A weaker year, but the strategy remained intact.
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2019: Up 20%.
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2018: Up about 1%, beating the Dow, which fell nearly 6%.
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2017: Up 19%.
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2016: Up 16%.
Across cycles, the appeal is clear: the Dogs of the Dow deliver steady returns with less volatility than high-growth sectors, making them an attractive choice for value-minded investors.
📊 How the 2025 Dogs of the Dow Are Performing So Far
As 2025 unfolds, several Dogs are off to a strong start:
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Verizon (VZ) – Yield: 6.8%
Up from ~$38 to $41 -
Chevron (CVX) – Yield: 4.55%
Up from ~$142 to $150.25 -
Johnson & Johnson (JNJ) – Yield: 2.53%
A major mover, from $142 to $205.42 -
Amgen (AMGN) – Yield: 2.81%
Strong rally from ~$258 to $338 -
Merck (MRK) – Yield: 3.37%
Slight move from ~$98 to $101 -
Coca-Cola (KO) – Yield: 2.89%
Up from ~$61 to $70.76 -
IBM (IBM) – Yield: 2.23%
Impressive jump from ~$215 to $301.80 -
Cisco (CSCO) – Yield: 2.13%
Up from ~$58 to $76.87 -
McDonald’s (MCD) – Yield: 2.47%
Slight increase from ~$293 to $300.72 -
Procter & Gamble (PG) – Yield: 2.9%
Down from ~$264 to $145.86
The official 2026 Dogs of the Dow list will be released soon, and investors will once again look for value opportunities among the index’s highest-yielding names.
🔎 Why This Strategy Endures
The Dogs of the Dow keeps working because it is:
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Simple: No complex models — just a rule-based selection of high-yield blue chips.
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Disciplined: Removes emotion from stock picking.
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Income-Driven: Dividends help smooth volatility.
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Historically Reliable: Especially in tough market years.
For investors who prefer stability, consistency, and value, the Dogs remain a compelling annual strategy.
Ian Cooper continues to track opportunities like these using a combination of technical analysis, fundamentals, and news-driven catalysts to help traders navigate the markets with clarity and confidence.