Over the course of the last three years, we have run a series of articles tracking the Dogs of the Dow strategy, and while the strategy has worked in each of the last three years, so far this year it has not worked out so well.
When we last looked at the group of this year’s Dogs, the collective group was up 2.0%, while the Dow Jones had appreciated 5.5%. The gap has narrowed slightly, but the Dogs of the Dow continue to underperform the overall market.
As of the time of this article, the ten stocks in this year’s group have gained an average 2.2% for the year, while the Dow Jones has risen 5.4%. The Dogs are catching up, but still have a long way to go to outpace the overall market.
The group will get a boost over the next month when a majority of the stocks will make their next dividend payment, but the dividends alone will not be enough to bring the group back in-line with the market, and a couple of the major underperformers will need to erase some recent losses if the group is to have any chance of winning out again this year.
Let’s take a quick look at each stock in the group, and see where the weakness is, and which stocks are enjoying market-beating returns for the year.