The Top Dogs of the Dow for 2024

Nov 27, 2023

As we near the end of 2023, it’s time to look into potential Dogs of the Dow for 2024.

With the strategy, you simply buy the top 10 highest-yielding stocks on the most beaten-down stocks on the Dow. A year from now, you close them out – hopefully for wins – and repeat with a new batch of the top Dogs of the Dow.

For some history, the 2022 Dogs of the Dow beat the major indices, even in a “ruff” year.

In fact, while the Dogs of the Dow stocks fell 1.6% on the year, once you add in the dividend payouts, the Dogs returned 2% on the year.

And while 2% may not sound like a big win, consider that, in 2022, one of the worst years on record since 2008, the NASDAQ lost 33%. The S&P 500 lost 19%. The Dow Jones lost about 9%. That 2% doesn’t look so bad now, does it?

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%.

So far, for 2023:

  • Verizon (VZ) – which has a current yield of 7.11% — fell from about $38 to $37.39
  • Dow Inc. (DOW) – with a yield of 5.42% — jumped slightly from $49.99 to $51.67
  • Intel (INTC) – with a yield of 1.14% – ran from $26.72 to $43.96
  • Walgreens (WBA) – with a yield of 9.21% – fell from about $37 to $20.85
  • 3M (MMM) – with a yield of 6.41% – fell from about $120 to $95.95.
  • IBM (IBM) – with a yield of 4.47 % – ran from $140 to $155.15
  • Amgen (AMGN) – with a yield of 3.21% — ran from about $258 to $265.46
  • Cisco (CSCO) – with a yield of 3.23% — jumped from about $47.48 to $48.36
  • Chevron (CVX) – with a yield of 4.17% — fell from about $176 to $144.90
  • JPMorgan Chase (JPM) – with a yield of 2.74% — ran from about $134 to $153.50

Six out of 10 isn’t bad at all. What helped were the yields this year.

So, which stocks are likely to join the Dogs of the Dow list for 2024?

Here are three we believe could be added to the official list expected by Jan. 1, 2024.

3M (MMM) will likely make the list for 2024.
For the year, 3M slipped from $120 to $95.95. With its 6.41% yield, we believe it could push higher in the new year. Helping, Ray Dalio’s Bridgewater Associates recently boosted its holdings in the beaten-down stock to 71,300.

Walgreens (WBA), which slipped from about $37 to $20.85 will probably make the list again, with its yield of 9.21%. And Chevron (CVX) should also make the list, with its yield of 4.17%. For the year, CVX fell from $176 to $144.90, and is now wildly oversold.

These are just a few of the top, most likely Dogs of the Dow. Stay tuned for more.

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