Large-Cap And High-Dividend Yield: 5 'Dogs of the Dow' Worth Betting On In 2012

Four decades ago, the “Dogs of the Dow” strategy was born. It’s a simple concept where investors hold the ten highest dividend-yielding companies of the Dow Jones Industrial Average and rebalance annually. This strategy has paid off for the devoted “Dogs” investor: Since 1972, it has beaten the overall index by 3 percent, says UBS Investment Research.

David Alton Clark submits:

Here is my yearly list of the highest dividend yield companies in Europe and the UK. Each year in May, with the bulk of the previous year's financial reporting behind us, I compile a list of Europe's highest dividend yield stocks to identify attractive market sectors and possible high yield investments. Make sure you read to the end of the article where you can find my other European high dividend articles that may be of interest. I have also selected my top 10 high dividend picks from the list based on the “Dogs of the Dow” investment strategy popularised by Michael O’Higgins in his book Beat

Here is my yearly list of the highest dividend yield companies in Europe and the UK. Each year in May, with the bulk of the previous year's financial reporting behind us, I compile a list of Europe's highest dividend yield stocks to identify attractive market sectors and possible high yield investments. Make sure you read to the end of the article where you can find my other European high dividend articles that may be of interest. I have also selected my top 10 high dividend picks form the list based on the “Dogs of the Dow” investment strategy popularised by Michael O’Higgins in his book Beat

Michael Johnston submits:When reporting on the performance of the U.S. stock market, everyone from the Wall Street Journal to local anchormen generally refer to the Dow Jones Industrial Average, one of the oldest and most widely-recognized stock benchmarks. So it’s not surprising that one of the most popular ETFs available to U.S.

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.

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.