The so-called Dogs of the Dow—the top dividend-yielding stocks on the Dow Jones Industrial Average—are not fetching the kind of returns that investors may have been counting on this year, particularly after the strategy crushed the broader market in 2016.
The idea is to pick the 10 highest yielding stocks on the Dow and adjust the portfolio at the end of each year to reflect changes in dividends.
But the 10 blue chips that offered generous yields at the end of last year are up an average 2.4% so far in 2017, lagging the 6.3% gain logged by their non-canine peers and the Dow’s DJIA 5.4% year-to-date advance, according to Bespoke Investment Group.
Three of the Dogs—Exxon Mobil Corp., Chevron Corp., and Verizon Communications Inc.—are, in fact, the worst performing Dow stocks so far.
Source: The Dogs of the Dow are falling behind in the 2017 rally – MarketWatch