2012 Dogs Of The Dividend Challengers - Seeking Alpha: In compiling the Dividend Champions list (found here) I get a chance to screen the database using a number of criteria, and I often run across related strategies that might be of interest to readers. One such approach is the well known “Dogs of the Dow” strategy that simply picks the 10 highest yielding stocks from the Dow Jones Industrial Average at the start of the year and holds them until the end of the year. It was highlighted by the book Beating the Dow by Michael B. O'Higgins and John Downes in 1991 and even has its own website (here).
The success of the Dow Dog strategy has varied in recent years as its popularity has attracted more participants. And there are many variations of the approach, such as a “Small Dogs” version that suggests owning the five lowest-priced stocks from among the 10 high yielders. Naturally, attempts have been made to apply the “Dogs” strategy to other indices or groups of companies, and that brings us to this article.
The success of the Dow Dog strategy has varied in recent years as its popularity has attracted more participants. And there are many variations of the approach, such as a “Small Dogs” version that suggests owning the five lowest-priced stocks from among the 10 high yielders. Naturally, attempts have been made to apply the “Dogs” strategy to other indices or groups of companies, and that brings us to this article.
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