Here is the list of the 2019 Dogs of the Dow stocks (from Yahoo Finance).
The Dogs of the Dow is a stock investing strategy popularized by Michael B. O’Higgins in his 1991 book, Beating the Dow. For more about the Dogs of the Dow (and Puppies of the Dow), I recommend reading his 2011 revised edition of the book. I’m going to go over his 3 main strategies discussed in his 2011 revised edition.
Strategy #1: Dogs of the Dow
Buy equal amounts of the 10 Dogs of the Dow stocks the first trading day of the year. Each subsequent year, re-balance into equal amounts of that new year’s Dogs of the Dow stocks.
Strategy #2: Puppies of the Dow
Instead of buying the 10 Dogs. Buy the 5 lowest priced of them. In 2019, that would be:
- Exxon Mobil (XOM)
- Verizon (VZ)
- Pfizer (PFE)
- Coca-Cola (KO)
- Cisco Systems (CSCO)
Strategy #3: Penultimate Profit Prospect (PPP)
Buy the second lowest-priced of them. The 2019 PPP is Pfizer ($43.65), which barely beats out Cisco ($43.33)
I don’t currently use any of the Dogs of the Dow strategies, but I am fascinated by them. I use the Dogs of the Dow more as a screen to find potentially undervalued stocks.
I am long IBM, VZ, JPM, and PG.
I wrote this article myself and it expresses my own opinions. I’m not receiving compensation for it (other than from Wolves of Investing), and I have no business relationship with any company whose stock is mentioned in this article.