Dogs of the Dow Investment Strategy

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.

Here is the list of the 2020 Dogs of the Dow Stocks

Also check out the:

• 2019 Dogs of the Dow
• 2019 Dogs of the Dow Results

 

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 2020, that would be:

• Dow Inc. (DOW)
• Pfizer Inc. (PFE)
• Walgreens Boots Alliance, Inc. (WBA)
• Cisco Systems, Inc. (CSCO)
• The Coca-Cola Company (KO)

Strategy #3: Penultimate Profit Prospect (PPP)

Buy the second lowest-priced of them. The 2020 PPP is Cisco Systems, Inc. ($47.96).

Disclosure

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/we own shares of stock in VZ and MMM Except for Wolves of Investing, I/we are not receiving any compensation from and do not have any business dealings with any companies discussed in this article.