What Is the "Dow Dog"?
If you’re
wondering, “What on earth is the ‘Dow Dogs’ strategy?” then this is definitely worth reading!
I only learned about it myself after I started investing in U.S. stocks in 2018 (that was just last year, haha). It’s a strategy where you invest equally in the top 10 companies among
the Dow 30 components with the highest dividend yields.Then, one year later, you search for that year’s top 10 companies by dividend yield and invest in them. The Dow 30 components are global giants, and even while living in Japan, there are so many services and products you’re familiar with or use. I think that alone provides a sense of stability. (Personal opinion)
2019 Dow Dogs List
Below is the 2019 Dow Dogs list.
What do you think? Are there any companies here whose names you recognize, or whose services or products you use? Since I’m still a beginner at stock investing, I feel more at ease investing in companies whose services are so deeply integrated into daily life. I also think that investing equally in the top 10 companies by dividend yield is a good strategy because it offers a high yield and provides diversification against unforeseen events.
Past Performance of the Dow Dogs
Hiro from “Grow Rich Slowly: Become a Millionaire with Siegel-Style U.S. Stock Investing!”
posted a comparison of the performance of the “Dogs of the Dow” stocks against the Dow Jones Industrial Average from 2001 to 2017, so I’ll quote that here.
I think the results are excellent!
By the way, in 2018,
The Dow Dogs have outperformed again in 2018.
This might be an effective strategy for beginners
As a beginner in U.S. stock investing, I think this is an easy strategy to follow. Relying solely on
this might be a bit unstable, but personally, I think it’s a strategy worth incorporating.
As a token of my appreciation, I’ll include the link below.
here to read Hiro’s article on “Grow Rich Slowly: Become a Millionaire with Siegel-Style U.S. Stock Investing!”
