Rather than simply buying the entire Dow, however, many dividend investors choose instead to follow a strategy called the Dogs of the Dow.
These stocks offer better yields than the Dow as a whole, and often, they've been able to outperform the Dow over the course of the year. Let's take a first look at 2017's Dogs of the Dow to see what you should watch out for over the coming year.
The "Dogs of the Dow" are the highest-yielding components at the start of any given year. In the past sixteen years, the Dogs of the Dow have returned an average of 7.9%.
This is above that of the overall Dow, which has returned a more meager 6.3% average return. The Dow stocks gained an exceptional 18.7% last year, with Caterpillar (NYSE:CAT), Goldman Sachs (NYSE:GS), and JPMorgan (NYSE:JPM) leading the charge.
Here are the Dogs of the Dow for 2017 with yield...
