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As we welcome the New Year, we're once again ready to announce the Dogs of the Dow for the year 2011. After experiencing losing years in 2007 and 2008, the Dogs bounced back with positive gains in 2009 and 2010.
Dogs of the Dow Performance
The Dogs of the Dow ended 2010 with a double-digit gain for the year. It's also the best performance over the last four years. In addition, the Dogs also outperformed the Dow Jones Industrial Average, as well as the S&P 500 for the first time since 2006.
In 2010, the S&P 500 finished the year with a 12.8% gain, the DJIA closed out the year with a gain of 11.0%, while the Dogs were up 15.5%. This means the Dogs of the Dow Theory met its objective last year, since it beat these two market performance measures. Overall, the Dogs of the Dow Theory proved to be a winning investment strategy twice in the last five years. This is a very disappointing outcome for this investing approach. The last time the theory held true was back in 2006.
Some of the bigger Dogs in 2010 included Pfizer, Merck, AT&T, and Verizon; four companies that failed to beat the performance of the Dow Jones Industrial Average. Two of these Dogs, Merck and Pfizer, had a loss on the year. This is a surprising result for blue chip stocks, especially during a comeback year for the stock market.
2011 Dogs of the Dow
It's only possible to announce the 2011 Dogs of the Dow after the last trading day of any given year. Fortunately, the criteria for choosing these new Dogs are simple:
The 2011 Dogs can be found in the following table:
Dogs of the Dow List - 2011
| Stock Symbol |
Company Name |
2010 Close |
Dividend Yield |
| T |
AT&T Inc |
$29.38 |
5.85% |
| VZ |
Verizon Communications Inc |
$35.78 |
5.45% |
| PFE |
Pfizer Inc |
$17.51 |
4.57% |
| MRK |
Merck & Co Inc |
$36.04 |
4.22% |
| KFT |
Kraft Foods Inc |
$31.51 |
3.68% |
| JNJ |
Johnson & Johnson |
$61.85 |
3.49% |
| INTC |
Intel Corp |
$21.03 |
3.42% |
| DD |
Du Pont De Nemours |
$49.88 |
3.29% |
| MCD |
McDonald's Corp |
$76.76 |
3.18% |
| CVX |
Chevron Corp |
$91.25 |
3.16% |
If you look back at the 2010 Dogs of the Dow, then you'll notice two of the dogs were replaced in 2011. Boeing and Home Depot were removed from the list, while Johnson & Johnson and Intel were added to the 2011 Dogs.
Dow Theories
The Dogs of the Dow Theory was first popularized by Michael O'Higgins in his book Beating the Dow, published back in 1992. If you're interested in learning more about the assumptions behind this investing strategy, then you might want to read our complete article on Dogs of the Dow. That particular article explains more of the history behind this approach, including the steps you need to follow if you want to invest in each of these companies. It also contains the list of Dogs of the Dow for prior years, as well as the annual performance of the Dogs over the last several years.
About the Author - Dogs of the Dow 2011
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