Dogs of the Dow 2007

It's time once again to announce the Dogs of the Dow for the year 2007.  After experiencing a decline in 2005, the Dow roared back in 2006 with double digit gains.  It was also a banner year for the Dogs of the Dow - with gains that outpaced the DJIA and the S&P 500.

Dogs of the Dow Performance

The Dogs of the Dow finished up 2006 with a 24.8% gain for the year.  That's its best performance since 2003 when it gained 23.6%.  More importantly, the Dogs performed much better than broader measures of the stock market such as the S&P 500 and the DJIA.

In 2006, the S&P finished the year with around a 13.6% gain and the DJIA closed out the year with a 16.3% gain.  That means the Dogs of the Dow Theory held up well last year by beating these measures.  Overall, that's only happened twice in the last five years.

2007 Dogs of the Dow

It's only possible to announce the new Dogs of the Dow after the last trading day of a given year.  The criteria for choosing the new Dogs are pretty simple.

• The companies must be members of the Dow Jones Industrial Average - which has 30 member companies that are all blue chip stocks.
• The Dogs of the Dow consist of ten companies that have the highest stock dividend yield on the last day of trading.

These new Dogs can be found in the following table:

Dogs of the Dow List - 2007

Dow Theories

If you're interested in learning more about the theory behind this investing strategy, then you might want to read our complete article on Dogs of the Dow.  That article explains all of the history behind this strategy including how you are supposed to invest in each of these stocks.  It also contains the current Dogs list as well as the lists for prior years.  This Dow Theory was first popularized by Michael O'Higgins in his book Beating the Dow, back in 1992.

About the Author - Dogs of the Dow 2007

Copyright © 2007 - Money-Zine.com