Dow Components Ranked by Dividend Risk and Growth

By Zvi Bar:The Dogs of the Dow theory presumes that investing in the 10 Dow Industrial components that enter a calendar year with the highest yields is a prudent investing strategy. The theorists note that these components should all be relatively strong companies, and that their high yields indicate that they should produce above-average income and also possibly appreciate to a higher price that reflects its above-average yield. This is a review of the performance of the 2011 Dow Dogs.

By Zvi Bar:The Dogs of the Dow theory presumes that investing in the 10 Dow Industrial components that enter a calendar year with the highest yields is a prudent investing strategy. The strategy presumes the Dogs are lagging, and that they might provide capital appreciation as well as an above-average income stream, and that the investments will be made in large, relatively stable businesses.

By Zvi Bar:The Dogs of the Dow theory presumes that investing in the 10 Dow Industrial components that enter a calendar year with the highest yields is a prudent investing strategy. The strategy presumes the Dogs are lagging, and that they might provide capital appreciation as well as an above-average income stream, and that the investments will be made in large, relatively stable businesses.

By Zvi Bar:The Dogs of the Dow is a theory that presumes investing in the 10 highest-yielding Dow Industrial components at the start of each year, or perhaps at another personally chosen time, is a prudent investing strategy.

Hickey and Walters (Bespoke) submit: It's been awhile since we checked up on the year-to-date performance of the 30 Dow members, so below we provide that information along with their overbought/oversold levels and current dividend yields.

Jim Pyke submits:Feedback from my previous article on the Dogs of the Dow (DoD) theory prompted me to review another group of stocks. If you have not read the previous article or are unfamiliar with DoD, DoD postulates that one can buy the highest dividend yielding stocks in the Dow Jones Industrial Average and outperform the Dow over the following year.

Jim Pyke submits:Dogs of the Dow (DoD) Theory postulates that one can buy the highest dividend yielding stocks in the Dow Jones Industrial Average (DIA) and outperform the Dow over the following year. The theory is based on the notion that the highest yielding dividend stocks will be bid up as investors seek the higher dividends until the yields drop to a more reasonable range.

StreetAuthority submits: By David StermanThe coming year marks the 20th anniversary of the first use of "Dogs of the Dow" as an investment strategy, which focuses on the 10 highest-yielding stocks in the Dow Jones Industrial Average (DJIA).