2023 Dogs of the Dow: Daily Performance Tables

And with just three simple steps, executed just once per year, we can create our own Dow Dogs ETF (minus the annual fees). The Dogs of the Dow strategy produced a price change of -1.8%, beating the Dow’s performance by about 7 percentage points. Moreover, when you add the roughly 4% yield that the Dogs of the Dow paid, they saw their return move into positive territory at around 2%. It was the first year since 2018 that the Dogs outperformed the Dow Jones Industrials. However, the Dogs of the Dow strategy underperform for some periods.

As a result, the oil major grew its adjusted earnings-per-share by 60%, from $2.56 to $4.09, though this was $0.20 below estimates. Prolia, which treats osteoporosis and should become the top-grossing product sometime this year, grew 14% due to 11% volume growth and higher average prices. Osteoporosis diagnoses in the U.S. are now nearly back to pre-COVID-19 levels, a slight sequential improvement.

• Keep in mind, this is only an estimate on the current outlook for JPM.
• For all steps required to invest in the 2023 Dogs of the Dow, get the free Dogs of the Dow Checklist.
• As a reminder, one strategy for dividend investors is buying the Dogs of the Dow at the end of the year.
• Regardless of whether the Dogs of the Dow outperform the stock market in 2023, many will find that the simple strategy gives them an easy way to get market exposure without a lot of hassle.
• Sales for Enbrel, which treats rheumatoid arthritis and remains Amgen’s top-grossing product, decreased 1%, extending the year-over-year declines to eleven consecutive quarters.

The decline in sales was due to lower revenue in all operating segments, as the company noted slower economic activity globally and destocking customer behavior. Dow reported fourth-quarter earnings on January 26th, 2023, and the results were weak. Dow Inc. is a standalone company that was spun off from its former parent, DowDuPont. That company has broken into three publicly traded, standalone parts, with the former Materials Science business becoming the new Dow Inc. Sales for Enbrel, which treats rheumatoid arthritis and remains Amgen’s top-grossing product, decreased 1%, extending the year-over-year declines to eleven consecutive quarters. The company expects the net selling price to continue to decline as the product faces competition.

It follows a strategy of investing in temporarily undervalued stocks. The Dogs of the Dow strategy assumes blue-chip companies do not change their dividend to reflect the normal business cycle. On the other hand, stock prices reflect the business cycle. The investing strategy requires you to have equally weighted positions in the ten Dogs of the Dow.

There are also screeners, investment news, research reports, charting capability, analyst rankings, watch lists, portfolios, etc. While it may not outperform the broader market every year, it is virtually guaranteed to provide investors with a combination of attractive current yield with steadily rising income over time. On January 31st, 2023, Amgen announced fourth-quarter and full-year results. Revenue declined 0.6% to $6.8 billion for the quarter, though this topped estimates by $30 million. Adjusted earnings-per-share of $4.09 compared unfavorably to $4.40 in the prior year but was in line with estimates. Among equities, the two stock sectors taking the biggest hits this year have been communications services, down by around 41%, and technology, down about 29.6%.

The Dogs of the Dow beat the market in 2022. Here’s how the list shapes up for next year

The 10 Dogs of the Dow ended 2021 with a performance of 6.55%. Like LLaMA 2, Meta’s new AI, which doesn’t yet seem to have a name, will be open-source and free for other companies to tailor to their liking, and will be powered by H100 AI chips from Nvidia. Unlike LLaMA 2, the new AI will eschew Microsoft’s Azure cloud-computing platform, and instead be built on Meta’s own infrastructure. One interesting point is if you follow this strategy, about 40% of your portfolio would be in tech and communications. Despite this, we see JPM outperforming the Dow Jones over the last year. Market conditions sometimes skew how we perceive some of these companies but it’s important to remember to look at the fundamentals.

The current stocks in the Dow 30 are listed in the table below. The 2023 Dogs of the Dow are picked from this list at the end of each calendar year. JPMorgan Chase & Co., initially labeled a „Dog of the Dow” for 2023, has exceeded expectations with its resilient performance. Despite facing challenges like rising interest rates and inflation, JPMorgan has outperformed the Dow Jones over the past year, fueled by robust cash flow and growing profits across its sectors. Another risk to be considered is the on-going interest rate hikes. The Fed has indicated that there is likely to be one more interest rate hike before the end of 2023.

The success of the Dogs of the Dow has a lot of investors taking a closer look at the strategy to see if it can keep outperforming in the coming year. Without further ado, here are the 10 stocks that will comprise the Dogs of the Dow for 2023, along with an explanation of the strategy behind them. Another analysis of returns from 2008 to 2018 indicates the strategy generally works. For example, in 2008, the Dogs of the Dow would have underperformed the DJIA. But it would have outperformed the DJIA in eight out of ten years during the period. Eight of the ten stocks on this list were on the Dogs of the Dow 2022.

After that they simply hold those stocks for the entire year and repeat the process at the beginning of the following year. Net-net, Dow is well-positioned to manage rising costs and feedstock bottlenecks, which may materialize in abundance in the coming year. First, the company puts a bit of effort into touting „feedstock flexibility,” which are the inputs to make chemicals, as a competitive advantage, and it’s more than management speak. Dow has strategically located its facilities close to low-cost sources.

This means that the dividend, as opposed to a company’s current stock price, is the better measure of a company’s average worth. The following table tracks the year-to-date performance of the high dividend paying stocks that make up the 2023 Dogs of the Dow plus the rest of the Dow 30 stock market index. In addition to stock price and YTD percent change, the current dividend yield is included for each Dow stock. Summary data (e.g. YTD percent change and dividend yield) for the Dogs of the Dow, Small Dogs of the Dow, Dow 30, and Dow Jones Industrial Average are included below.

JPMorgan Chase was classified as a Dog Of The Dow at the start of 2023. In short, Dogs Of The Dow are companies that are listed in the Dow Jones Industrial Average that fell substantially in price resulting in the dividend yield being in the top ten highest of the DJIA. This investment strategy involves investing these ten high yielding stocks and it has averaged an annual return of approximately 10% since 2000. The Dogs of The Dow is an investing strategy that consists of buying the 10 stocks with the highest dividend yield out of the Dow Jones Industrial Average (DJIA), an index of 30 large-cap U.S. stocks. The portfolio should be adjusted at the beginning of each year to include the 10 highest yielding stocks.

A Brief History of the Dow 30

The soaring share price sent Merck’s dividend yield down almost a full percentage point. Similarly, Coca-Cola (KO -0.98%) stock rose 8% on strong investor appetite for consumer staples stocks. The general idea for the Dogs of the Dow strategy is to make stock picking simple and relatively safe. The Dogs of the Dow focuses on blue-chip stocks paying a dividend. The strategy is also meant to be a long-term strategy requiring less effort than constant trading. Many Dogs of the Dow pay a dividend, and a few are dividend growth stocks, but it is not strictly a dividend growth investing strategy.

Revenue for the Consumer segment grew 4.2% to $26.8 billion, driven by strength in equipment sales and a 5.9% increase in wireless revenue growth. Broadband had 416K net additions during the quarter, which included 379 fixed wireless net additions. Sales from continuing operations grew 3% over the prior year’s quarter. However, adjusted earnings-per-share slumped 27% year-over-year to $1.16 from $1.59, mostly due to high Covid-19 vaccinations in the prior year. The company has now beaten analysts’ estimates for eleven consecutive quarters. As we do not expect sanctions to be withdrawn anytime soon, we expect oil and gas prices to remain excessive this year, and thus we project earnings-per-share for the year will be $15.00.

Hold these stocks for a year and then at the end of 12 months, look at the 30 Dow stocks again and apply again the 10 highest yielding stocks rule. He is a self-taught investor, analyst, and writer on dividend growth stocks and financial independence. His writings can be found on Seeking Alpha, InvestorPlace, Business Insider, Nasdaq, TalkMarkets, ValueWalk, The Money Show, Forbes, Yahoo Finance, and leading financial sites. In addition, he is part of the Portfolio Insight and Sure Dividend teams. He was recently in the top 1.0% and 100 (73 out of over 13,450) financial bloggers, as tracked by TipRanks (an independent analyst tracking site) for his articles on Seeking Alpha.

Dogs of the Dow 2022 FAQ

The best-performing sector was, unsurprisingly, energy, which was up about 56%. There is nothing like taking a few million barrels of production to drive crude prices higher. The utilities sector has posted the only other positive price action indicators number, up less than 1%. This is why proponents recommend investors who adopt it use it as a long-term strategy. In 2021, Dogs of the Dow once again outperformed, with 25.3% in total returns, compared to 21% for the index.

Revenue was up 15% for RedHat, 9% for Automation, 8% for Data & AI, and 10% for Security. Consulting revenue increased 0.5% to $4,770M from $4,746 due to a 7% rise in Business Transformation, 10% in Technology Consulting, and 12% in Application Operations. Adjusted earnings-per-share came to $0.46, which was 11 cents below estimates.

That’s when author Michael B. O’Higgins wrote Beating the Dow. This book explained how if an investor chose the Dow’s 10 highest-yielding stocks they would have outperformed the broader Dow index for the majority of years leading up to the publication of the book. Intel (INTC, $29.87) has been one of the most severely hit names in a terrible year for the tech sector.

Our Services

In most instances, the proposition here comes down to getting paid a lot to wait out whatever malaise a company is facing. The strategy involves investing an equal amount in the 10 highest dividend yielding Dow stocks every year. The primary benefit that investors get from using the Dogs of the Dow strategy is that it takes almost no time to set up and maintain. At the beginning of the year, you just have to take a look at the 10 Dow stocks that finished the previous year with the highest dividend yields.

For all steps required to invest in the 2023 Dogs of the Dow, get the free Dogs of the Dow Checklist. The index was created to track the market performance of leading industrial stocks in an era when the availability of information was limited. Initially, there were 12 industrial companies in the index. Despite potential risks like credit downgrades, JPMorgan’s strong balance sheet and impressive business segment growth inspire confidence, making it an attractive investment as we enter 2024. Their commitment to dividend growth, supported by a conservative payout ratio and healthy net income margins, positions them well for future dividend increases.

The Dogs of the Dow strategy sounds simple, but it takes some effort, like most things related to portfolio management. Like most do-it-yourself (DIY) strategies, there is an active element. That said, the actual trading and rebalancing are limited to a small part of the calendar year. The strategy maximizes yield in a relatively small universe of 30 blue-chip stocks.

This loss was attributable to a change in pension operations, resulting in a $6 billion charge that had no impact on the company’s cash. For the trailing 12 months ending the third quarter, IBM had free cash flow – cash from operations less capital expenditures – of $7.4 billion, more than three times the $2.1 billion in dividends paid. There’s a lot of uncertainty about how 2023 will go for stock investors. Fears of a recession have many investors gravitating toward value and dividend stocks once again. An extended bear market hit major benchmarks, with high-growth stocks taking the brunt of the damage.

JPMorgan Chase (JPM, 3.1% yield to start

The company’s adjusted earnings-per-share for the quarter blew away expectations, coming in at $3.56, which was 46 cents ahead of estimates. Revenue surged 18% year-over-year to $34.5 billion, which was $270 million more than expected. https://bigbostrade.com/ JPMorgan was founded in 1799 as one of the first commercial banks in the U.S. Since then, it has merged or acquired more than 1,200 different institutions, creating a global banking behemoth with about $124 billion in annual revenue.

Also, on February 15th, 2023, Cisco reported earnings results for the second quarter of the fiscal year 2023. On February 15th, 2023, Cisco announced a 2.6% dividend increase in the quarterly payment to $0.39 per share. Goldman Sachs reported fourth quarter and full-year results on January 17th, 2023. Among technology stocks, chipmaker AMD has dropped about 55% so far this year, while hard drive makers Seagate and Western Digital have fallen by 53% and 51.6%, respectively. Another chipmaker, Nvidia, also has pulled back by more than 50%.