The Top Reasons to Invest in the Dogs of the Dow Every Year
One of the top year-end strategies to consider is the Dogs of the Dow.
Not only does the strategy allow you to potentially profit from down and out Dow stocks, it allows you to collect respectable dividends, too.
Over the last six years, here’s how the Dogs did compared to the Dow Jones.
Plus, consider this.
“Coming into 2020, $10,000 invested in the Dogs at the beginning of the decade would have turned into about $40,100. For the overall Dow industrials, $10,000 would have become about $35,500. With 2020 returns added in, the Dow has the edge on the Dogs, at about $38,400 to $37,400,” as noted by Barron’s.
Even more attractive are the dividends. For an idea, here’s how the Dogs of the Dow have performed since January 2021.
While we’re not sure of the 2022 Dogs of the Dow just yet, the strategy is easy. Investors simply invest an equal amount among all 10 Dogs of the Dow at the start of the year, collect dividends throughout the year, close the positions by year end – and repeat.