The Dogs of the Dow is one of the easiest screens to run. Simply find the 10 highest yielding stocks in the DJIA and viola, you have the Dogs.
So far in 2011, the Dogs have returned a whopping 17% on average. Not bad considering all of the things that went wrong this year. Let’s take a look at the names from the most recent litter.
As it stands now, the list for 2012 has only a few new names that have changed. Chevron (CHV) is out and Proctor & Gamble is in. McDonald’s (MCD) is also out and will be replaced by General Electric (GE).
It is a simple strategy that is rotated/rebalanced once a year and has done a decent job of beating the DJIA over time.
For more, check out Dogsofthedow.com.