2023 Dogs of the Dow: Daily YTD Performance Tables

Health Care, Transportation & Electronics, and Safety & Industrial grew 1.9%, 1.4%, and 1.3%, respectively. Walgreens is facing difficult comparisons and has guided toward earnings-per-share of $4.45 to $4.65 for the fiscal year. At the midpoint, this would be a decline of almost 10% from the prior fiscal year. Walgreens Boots Alliance is the largest retail pharmacy in both the United States and Europe. Through its flagship Walgreens business and other business ventures, the company employs more than 315,000 people and has more than 13,000 stores. Dow noted that it would lay off about 2,000 employees globally as it aims to reduce costs by $1 billion in 2023.

  • 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.
  • In 2022 the average yield was 3.77%, while in 2023, it increased to 4.67%.
  • However, if you are using the live list to invest, you would decide how many top Dogs you want to invest in, for instance, fifteen.
  • These newly selected stocks become the Dogs for that year, and the portfolio is adjusted accordingly.

They must be considered mature companies going forward because they are among the largest market cap companies in the United States and the world indexes, which puts a lid on their growth. Fredrik Arnold is a retired quality service analyst sharing investment ideas with a primary focus on dividend yields by utilizing free cash flow and one-year total returns as trading indicators. Similarly, JPMorgan Chase (JPM 0.84%) shares suffered when a combination of rising interest rates and the tough market environment for investment banking dealt the financial giant a double whammy. This means that investors commit to holding these stocks for a full calendar year, regardless of market fluctuations or developments.

Verizon (VZ, 6.8%)

However, five more, Cisco Systems (CSCO), Coca-Cola (KO), 3M (MMM), Chevron (CVX), and International Business Machines (IBM), showed prices within 50% of meeting that goal. And interestingly, we have eight dogs returning for another race this year. Only two of 222’s Dogs—Coca-Cola KO
(KO) and Merck (MRK)—cycled out, replaced by JPMorgan Chase JPM
(JPM) and 2021 Dog Cisco Systems CSCO
(CSCO). All market data (will open in new tab) is provided by Barchart Solutions. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services.

  • This gain estimate was subject to an average risk/volatility 33% less than the market as a whole.
  • Dow Inc. is a standalone company that was spun off from its former parent, DowDuPont.
  • Did the Dogs collectively outperform or underperform the DJIA during the year?
  • INTC has a market cap of $122 billion compared to AMD having a market cap of $115 billion.
  • It underperformed the S&P 500 in 2021 by 16 percentage points and so far this year, the Dogs are down less than the market at large.

This is a great and simple strategy for value investors looking to purchase good businesses that are currently out of favor. In the last five years, from 2018 to 2023, however, the Dogs have trailed the DJIA with a wider gap, turning in trailing total returns of 5.29% compared to the DJIA’s trailing total return of 8.39%. The Dogs of the Dow is both seen as a dividend strategy as well as a value strategy. Stocks on the list does not necessarily mean they performed poorly the year prior, but rather that they pay a high yield. The thing to watch closely with banks is the strength of the consumer. JPM reported Q4 earnings last week that beat analyst expectations, but we did see them apply more cash towards their credit loss reserve.

While the traditional approach involves selecting and investing in these stocks at the start of the year, a live list enables active investors to modify their portfolio on any trading day. This adaptability empowers investors to seize market opportunities as they arise. Analyzing the average yields of the Dogs of the Dow for 2022 https://forexbroker-listing.com/ and 2023 provides valuable insights into the Dogs of the Dow strategy performance. In 2022 the average yield was 3.77%, while in 2023, it increased to 4.67%. Tracking the Dogs of the Dow strategy over time offers investors valuable insights into its consistency, adaptability, risk management and income-generation potential.

Financial Calendars

CVS Health (CVS) went through such a transformative shift, most notably with its November 2018 acquisition of health insurer Aetna for an eye-popping $78 billion. CVS shares have risen about 20% since then while paying a solid 2.3% dividend. As with many other retailers, Walgreens is struggling with post-pandemic crosscurrents amid inflation, a perennially shifting healthcare landscape and jittery consumers. Business stalled after the company failed to receive attractive bids.

After all, Chevron was one of the best performing stocks in the S&P 500 last year, let alone the DJIA. The Dow Jones 30 Industrials is a highly visible index of 30 major stocks. Nevertheless, 2022 may have marked a turning point for them when they both underperformed severely.

Best Travel Insurance Companies

This could involve selling the Dogs at the end of the year, as per the strategy, or when specific price targets are reached. Given the descriptions above, the Dogs of the Dow are clearly a very diverse group of blue-chip stocks that each enjoy significant competitive advantages and lengthy histories of paying rising dividends. The company had postpaid phone net additions of 217K during the quarter, much better than the 8,000 net additions in the third quarter. 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.

Dog of the Dow #8: JPMorgan Chase (JPM)

Diluted GAAP earnings per share increased 15% to $3.13 in the quarter from $2.72 in the prior year. The “Dogs of the Dow” strategy produces above-average income and concentrates on stocks that typically trade at lower valuations relative to the rest of the DJIA. Given that the DJIA represents some of the largest companies in the world, its “dogs” are typically companies with strong track records that have hit temporary problems.

Dog of the Dow #1: Verizon Communications (VZ)

The Dogs of the Dow strategy has a noteworthy track record that closely mirrors the performance of the Dow Jones Industrial Average (DJIA) over the years. However, its effectiveness can vary depending on the specific time frame and market conditions, with a notable advantage in markets emphasizing value investing principles. When a DJIA stock experiences a short-term event causing its share price to dip, it can ascend the Dogs list if it https://forex-reviews.org/ maintains a stable dividend yield. Often, these temporary price fluctuations prove to be just that—temporary. Over the year, such stocks can rebound, potentially outperforming the broader market—a key principle of this strategy. This should mean that companies with a high dividend relative to stock price are near the bottom of their business cycle, so their stock price likely would increase faster than companies with low dividend yields.

Dogs of the Dow: Definition, List of Stocks, Performance

You can see the value emphasis in the Dogs of the Dow strategy from the dividend stocks that joined and left the list in 2023. Merck (MRK -0.26%) had a huge year, with its stock jumping 45% as prospects for several of its approved and pipeline https://broker-review.org/ drugs improved dramatically in 2022. The soaring share price sent Merck’s dividend yield down almost a full percentage point. Similarly, Coca-Cola (KO -0.14%) stock rose 8% on strong investor appetite for consumer staples stocks.

While the Dogs of the Dow strategy should be relatively low maintenance, it’s not entirely hands-off. Investors should keep an eye on their portfolio throughout the year, monitoring the performance of each Dog. This periodic check ensures the portfolio remains aligned with the strategy’s principles. Importantly, investors should have a predefined exit strategy in place.