With the third quarter coming to an end, it is time to once again check in on this year's “Dogs of the Dow”. The group has outperformed the Dow Jones each time we have checked this year, and through the end of September it continues to outpace the market.
As of the end of September, the Dow Jones had gained 2.8% for the year. Meanwhile, during that same time period, the Dogs of the Dow strategy has produced a return of 10.5%, including dividends.
In case you are unfamiliar with the Dogs of the Dow strategy, the idea is that at the start of the calendar year, you buy an equal dollar weighted amount of the top ten yielding stocks in the Dow Jones. The strategy has not always been successful, but it has beaten the Dow more often than not, and it is on track to do so once again this year.
Let's take a look at each of the ten stocks in this year's group, and see how they have contributed to the overall return of the group of stocks this year.