Investing in the stock market can be a daunting task, but there are strategies that can help simplify the process. One such strategy is called “Dogs of the Dow,” which involves buying the 10 highest-yielding stocks from the Dow Jones Industrial Average (DJIA) at the end of each year. These stocks are considered undervalued by the market and are expected to provide solid returns in the future.
The 2021 Dogs of the Dow list includes several companies that are well-positioned to weather the challenges of the current economic environment. Here are three dependable dogs of the Dow to consider buying now:
1. Dow Inc (NYSE: DOW): Dow Inc is a global leader in materials science, with a portfolio of innovative products and solutions that are used in a wide range of industries. The company has a strong balance sheet and is well-positioned to benefit from the economic recovery.
2. Coca-Cola (NYSE: KO): Coca-Cola is a well-known brand that has been around for over a century. The company has a dominant position in the non-alcoholic beverage market and a strong distribution network. Coca-Cola has also been investing in new products and technologies to stay competitive.
3. Amgen (NASDAQ:AMGN): Amgen is a biotechnology company that develops and produces innovative medicines for serious illnesses. The company has a strong pipeline of products in development and is well-positioned to benefit from the growing demand for biotech products.
Investing in the Dogs of the Dow can be a simple and effective way to build a diversified portfolio of stocks. By focusing on companies with high dividend yields, investors can potentially earn solid returns while also receiving regular income. However, it’s important to keep in mind that no investment strategy is foolproof and there is always some degree of risk involved.
As with any investment, it’s important to do your own research and consult with a financial advisor before making any decisions. With that said, the 2021 Dogs of the Dow list provides a good starting point for investors looking for dependable stocks to add to their portfolios.
The Current Dogs of the Dow
The Dogs of the Dow is a popular investment strategy that involves selecting the ten highest dividend-yielding stocks from the Dow Jones Industrial Average and holding them for a year. As of now, the three dependable Dogs of the Dow to buy are Dow Inc (NYSE: DOW), Coca-Cola (NYSE: KO), and Amgen (NASDAQ: AMGN).
Dow Inc, a diversified chemical company, has a business model that is built around materials science, manufacturing, and environmental sustainability. It has a broad customer base, including industries such as packaging, infrastructure, and transportation, which provides a stable revenue stream.
Coca-Cola, a leading beverage company, has a strong global brand presence and a loyal customer base. It has been paying dividends consistently for over 50 years, making it a reliable investment option for investors.
Amgen, a biotechnology company, has a diversified product portfolio in the pharmaceutical industry. It has a strong focus on research and development, which helps it to maintain a competitive edge in the market and generate strong revenue growth.
Investors looking for dependable stocks can consider these three Dogs of the Dow as they have solid business models, strong customer bases, and stable dividend payouts.
Exploring the Dogs of the Dow Fund
There are several Dogs of the Dow funds available in the market. These funds are designed to track the Dogs of the Dow strategy by investing in the highest-yielding stocks of the Dow Jones Industrial Average. The funds typically have a diversified portfolio of the 10 stocks that meet the Dogs of the Dow criteria, and they aim to provide investors with a low-cost, low-risk investment option. Some popular Dogs of the Dow funds include the ALPS Sector Dividend Dogs ETF, the ProShares S&P 500 Dividend Aristocrats ETF, and the Invesco Dow Jones Industrial Average Dividend ETF. These funds offer investors an easy way to implement the Dogs of the Dow strategy without having to pick the individual stocks themselves.
Conclusion
The Dogs of the Dow strategy can be a reliable approach for long-term investors seeking dependable stocks with high dividend yields. However, it’s important to note that past performance does not guarantee future success, and investors should conduct their own research and analysis before making any investment decisions. With that said, Dow Inc, Coca-Cola, and Amgen are three companies that may be worth considering as potential Dogs of the Dow for 2021. By focusing on companies with strong business models and customer bases, investors can potentially earn steady returns over time while also receiving attractive dividend payments. Ultimately, the Dogs of the Dow approach can be a useful tool for investors looking to build a diversified portfolio of dependable stocks.
