What Are the Dogs of the Dow for 2024?
It's time for followers of the Dogs of the Dow stock-picking strategy to rebalance their portfolios.
The Dogs of the Dow is an investing strategy where income investors essentially bet on beaten-down blue chip dividend stocks in the Dow Jones Industrial Average.
First popularized in the early 1990s, the Dogs of the Dow is supposed to deliver superior risk-adjusted returns vs the DJIA. Although the Dogs of the Dow has a mixed track record in that regard, at least it's dead simple to follow: buy the 10 Dow stocks with the highest dividend yields in the average at the end of December, and then hold them for one year.
The idea behind the Dogs of the Dow is that investors are using the highest dividend yields as proxies for valuation. Recall that a dividend stock's yield rises as its price falls. The Dow Jones stocks with the highest dividend yields should theoretically be bargains, what with their depressed share prices and all.
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With the end of the year approaching, it's time for followers of the Dogs of the Dow strategy to rebalance their portfolios. Below please find the 10 Dogs of the Dow for 2024, listed by dividend yield as of December 22.
Dow stock | Ticker | Dividend yield |
---|---|---|
Walgreens Boots Alliance | WBA | 7.37% |
Verizon Communications | VZ | 7.11% |
3M | MMM | 5.68% |
Dow | DOW | 5.09% |
International Business Machines | IBM | 4.13% |
Chevron | CVX | 4.01% |
Amgen | AMGN | 3.22% |
Coca-Cola | KO | 3.17% |
Cisco Systems | CSCO | 3.14% |
Johnson & Johnson | JNJ | 3.07% |
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Dan Burrows is Kiplinger's senior investing writer, having joined the august publication full time in 2016.
A long-time financial journalist, Dan is a veteran of SmartMoney, MarketWatch, CBS MoneyWatch, InvestorPlace and DailyFinance. He has written for The Wall Street Journal, Bloomberg, Consumer Reports, Senior Executive and Boston magazine, and his stories have appeared in the New York Daily News, the San Jose Mercury News and Investor's Business Daily, among other publications. As a senior writer at AOL's DailyFinance, Dan reported market news from the floor of the New York Stock Exchange and hosted a weekly video segment on equities.
Once upon a time – before his days as a financial reporter and assistant financial editor at legendary fashion trade paper Women's Wear Daily – Dan worked for Spy magazine, scribbled away at Time Inc. and contributed to Maxim magazine back when lad mags were a thing. He's also written for Esquire magazine's Dubious Achievements Awards.
In his current role at Kiplinger, Dan writes about equities, fixed income, currencies, commodities, funds, macroeconomics, demographics, real estate, cost of living indexes and more.
Dan holds a bachelor's degree from Oberlin College and a master's degree from Columbia University.
Disclosure: Dan does not trade stocks or other securities. Rather, he dollar-cost averages into cheap funds and index funds and holds them forever in tax-advantaged accounts.
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