Dogs of the Dow 2018

It was a record year for the Dow Jones Industrial Average; it was also a good time to be an investor in the stock market.  As we've done for the past eleven years, the close of one year signals the time to announce the Dogs of the Dow for 2017.

Dogs of the Dow Performance

After experiencing a loss last year, the Dogs of the Dow ended 2016 with a double-digit gain.  They outperformed the Dow Jones Industrial Average (DJIA) by a large margin.  The dogs also beat the S&P 500 Index, after failing to beat this benchmark for five consecutive years.

In 2016, the S&P 500 finished the year with a 9.5% gain, the DJIA closed out the year with a gain of 13.4%, while the Dogs were up roughly 16.1%.  Overall, the Dogs of the Dow Theory proved to be a winning investment strategy three times in the last ten years (2010, 2011, and 2016).

Some of the bigger Dogs in 2016 include Pfizer (+ 0.6%), and Procter & Gamble (+ 5.9%), which are poor results for blue chip stocks; especially in what was a relatively good year for the Dow Jones Industrial Average..

2017 Dogs of the Dow

Dogs of the Dow TrendIt's only possible to announce the Dogs of the Dow after the last trading day of any given year.  Fortunately, the criteria for choosing these new Dogs are simple:

The companies that make up the 2017 Dogs of the Dow can be found in the following table:

Dogs of the Dow 2018

Stock Symbol Company Name 2017 Close Dividend Yield
VZ Verizon Communications 52.93 4.46%
IBM IBM 153.42 3.91%
PFE Pfizer 36.22 3.75%
XOM ExxonMobil 83.64 3.68%
CVX Chevron 125.19 3.45%
MRK Merck 56.27 3.41%
KO Coca-Cola 45.88 3.23%
CSCO Cisco Systems 38.3 3.03%
PG Procter & Gamble 91.88 3.00%
GE General Electric 17.45 2.75%

This year's list contains two new companies. Boeing and Caterpillar were part of the 2017 list, while General Electric and Procter and Gamble make the 2018 list.

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. Anyone interested in learning more about the assumptions behind this investing strategy, should read our complete article on Dogs of the Dow. That article explains more of the history behind this approach, including the steps to follow when investing in each of these companies. It also contains a list of the Dogs of the Dow for the last five years, as well as their historical performance over an eighteen-year timeframe.

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