With the exception of recent CPI news, 2022 was a year to forget.
With hopes New Year 2023 will be better, investors may want to consider jumping into the next round of Dogs of the Dow. Even though a lot of analysts like to bash the Dogs of the Dow, they’ve actually done very well historically.
In 2021, the Dogs of the Dow returned about 16.3%.
While 2020 wasn’t a great year for the Dogs, most other years have done very well. In 2019, the Dogs were up 20%. In 2018, they were up about 1%, but still beat the Dow, which fell close to 6%. In 2017, the dogs were up 19%. In 2016, they were up 16%.
And while many of the 2022 Dogs of the Dow are down at the moment, many are oversold, with strong dividend yields to boot.
- Verizon (VZ) started the year at $50.83, and is now oversold at $37.62 with a yield 6.94%
- Dow Inc. (DOW) started at $55.93 and is now oversold at $47.68, with a yield of 5.87%
- IBM (IBM) started at $130.89 and is now up to $137.39, with a yield of 4.8%
- Chevron (CVX) ran from $115.25 to $177.93, and has a yield of 3.19%
- Walgreens (WBA) fell from $51.14 to $36.89, and has a yield of 5.2%
- Merck (MRK) ran from $75.29 to $101.59, and has a yield of 2.72%
- 3M (MMM) fell from $174.85 to $123.83, and has a yield of 4.81%
- Amgen (AMGN) ran from $219.96 to $289.65, and has a yield of 2.68%
- Coca-Cola (KO) was up from $57.95 to $58.77, and has a yield of 2.99%
- Intel (INTC) fell from $50.86 to $27.52, and has a yield of 5.31%
While not great, half of the Dogs were winners so far this year.
Considering how difficult the year was, it’s ok. Not great. But ok.
Heading into 2023, many of these oversold dividend stocks could allow investors to profit in two ways: One, through potential appreciation of the stock price from depressed levels. Two, through dividend distributions. While the “official” Dogs of the Dow list isn’t out just yet, some of the top ones that could be included in 2023 are Verizon, Dow Inc., Walgreens, 3M, and Intel.
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