Every January, one of the best strategies is to invest in the top Dogs of the Dow.
While 2020 wasn’t a great year for the Dogs, most other years have done very well.
In 2019, the Dogs were up 20%. In 2018, they were up about 1%, but still beat the Dow, which fell close to 6%. In 2017, the dogs were up 19%. In 2016, they were up 16%. In 2015, they were up 2.6%. In 2014, they were up about 11%.
Better, all of the Dogs pay dividends.
As for the 2021 Dogs of the Dow, most are doing well so far. Since January 2021:
- Chevon (CVX) with a yield of 6.05% — ran from $82 to $104
- IBM (IBM) with a yield of 5.23% – ran from $120 to $146
- Dow (DOW) with a yield of 5.11% – ran from $54 to $63
- Walgreens (WBA) with a yield of 4.72% – ran from $40 to $52
- Verizon (VZ) with a yield of 4.27% — fell slightly from $57 to $56.03
- 3M (MMM) with a yield of 3.37% – ran from $168 to $196
- Cisco (CSCO) with a yield of 3.23% — ran from $44 to $53
- Merck (MRK) with a yield of 3.24% — ran from $75 to $77
- Coca-Cola (KO) with a yield of 3.07% — ran from $52 to $54
- JP Morgan (JPM) with a yield of 2.89% — ran from $123 to $154
That’s a 90% win rate for the Dogs so far this year.
Better, some of these stocks are pivoting higher from recent lows, making them potential buy opportunities, including Coca-Cola, IBM, and Dow Holdings Inc.
In addition, according to Barron’s, “Coming into 2020, $10,000 invested in the Dogs at the beginning of the decade would have turned into about $40,100. For the overall Dow industrials, $10,000 would have become about $35,500. With 2020 returns added in, the Dow has the edge on the Dogs, at about $38,400 to $37,400.”
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