New Year means new ‘Dogs of the Dow”


NEW YORK (AP) — It’s a new year, so once again it’s time to take “Dogs of the Dow” out for a run.

This annual Wall Street strategy has investors kick off January by buying the 10 highest-yielding stocks in the Dow Jones industrial average and keep them for rest of the year.

Yield is the annual dividend from a company divided by its stock price. The higher yields of the “Dogs” signal their stock prices declined the most among the Dow’s 30 blue-chip companies.

The goal of the strategy is to earn more dividend income and hope that the stocks also mount a comeback.

In the top spot for 2014 is AT&T, which has a dividend yield of around 5.2 percent, followed by Verizon Communications, which has a yield of 4.3 percent. Verizon and AT&T had the No. 1 and 2 spots, respectively, going into 2013 last January.

Rounding out the top 10 “Dogs of the Dow” are Merck, Intel, Pfizer, McDonald’s, Chevron, General Electric, Cisco and Microsoft.

 

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