Should You Invest in the Dogs of the Dow Stocks?

These temporarily out-of-favor stocks can deliver both strong dividend payouts and share-price appreciation in the year ahead.

Senior African American couple meeting with female financial adviser reviewing report
(Image credit: kali9)

As an investment strategy, what could be simpler? At the beginning of each year, invest equal amounts in the 10 highest-yielding of the 30 companies in the Dow Jones industrial average. Then sit back, collect your fat dividends, and watch the stock prices of these major American corporations rise, as other investors discover that those high yields were based not just on sweet dividend payouts but on their unfairly depressed prices.

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Kevin McCormally
Chief Content Officer, Kiplinger Washington Editors
McCormally retired in 2018 after more than 40 years at Kiplinger. He joined Kiplinger in 1977 as a reporter specializing in taxes, retirement, credit and other personal finance issues. He is the author and editor of many books, helped develop and improve popular tax-preparation software programs, and has written and appeared in several educational videos. In 2005, he was named Editorial Director of The Kiplinger Washington Editors, responsible for overseeing all of our publications and Web site. At the time, Editor in Chief Knight Kiplinger called McCormally "the watchdog of editorial quality, integrity and fairness in all that we do." In 2015, Kevin was named Chief Content Officer and Senior Vice President.