NOTE: this is the second of a two part series. You can view part one here.
Yesterday we took a look at the first five stocks in this year’s Dogs of the Dow, and we want to follow that up with a closer look at the remaining five stocks that make up this year’s collection of stocks in the Dogs of the Dow.
This is the fourth year we have run a series on the strategy, which has proven successful in each of the last three years.
To summarize the strategy, investors would purchase an equal dollar weight amount of shares in each stock in the Dow Jones with the ten highest dividend yields at the start of the year, and hold those positions through the year in hopes of the group averaging a return greater than the overall Dow Jones.
This year’s group has two new additions, soft-drink maker Coca-Cola (KO) and defense and aerospace contractor Boeing (BA). We took a closer look at Boeing in the first part of this series, and Coca-Cola will be reviewed in this section.
What set last year apart from previous years when we following the strategy was that each of the ten positions ended the year in the green. Whether or not this year turns out to be as successful as 2016 remains to be seen. We will continue to track this year’s group through the course of the year, and post updates on the group’s collective performance.
For now, let’s take a closer look at the second group of five stocks that comprise this year’s Dogs of the Dow.