Dogs of the Dow: 5 Stocks Set to Outclass Market

The Dogs of Dow Strategy: A History of Market-Beating Results

The Dogs of Dow strategy, created by Michael O’Higgins and detailed in his book “Beating the Dow,” has a long history of outperforming the market. Initially conceived for companies listed on the Dow Jones Industrial Average (DJIA), this strategy has proven to be successful beyond North America, extending to European stock market indexes as well. The methodology involves selecting the 10 companies with the highest dividend yield at the close of the last trading session of the year. These 10 companies are then equally weighted in a portfolio and held for the entire year.