Current Dow Dogs to Buy Now

If you're looking to invest in the Dow Jones, you'll want to consider the current Dow Dogs - the top 10 stocks in the Dow Jones Industrial Average.

These stocks have consistently outperformed the average, with a minimum dividend yield of 3.2% and a maximum dividend yield of 8.5%.

The current Dow Dogs are dominated by consumer staples, with 4 out of the 10 stocks falling into this category.

Some of the top Dow Dogs include Procter & Gamble, Coca-Cola, and McDonald's, which have been consistently paying out dividends for over 50 years.

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The Dow Dogs are a group of dividend-paying stocks that have historically outperformed the broader market. They are often referred to as the "Dividend Aristocrats" because they have increased their payouts for at least 25 consecutive years.

One of the key characteristics of the Dow Dogs is their high dividend yields. For example, International Business Machines (IBM) has a dividend yield of 3.7%. This is a significant advantage for income-seeking investors, as it provides a relatively high return on investment.

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Cisco Systems (CSCO) is another Dow Dog that has reported solid results in recent quarters. In its second quarter earnings report, the company's revenue decreased 5.9% to $12.8 billion, but this was $100 million better than expected.

Here are some key statistics for the Dow Dogs:

These companies have a strong track record of generating revenue and paying dividends to their shareholders. As a result, they are often attractive options for investors looking for stable, income-generating investments.

Goldman Sachs has a market capitalization of $134 billion, which is a significant indicator of its financial health.

The company was founded in 1869 and has since grown into one of the world's leading financial companies, particularly in investment banking.

Goldman Sachs competes in a wide variety of service activities to a diverse and broad base of global customers.

Its revenue is expected to reach around $50 billion this year, which is a substantial amount of money.

The bank posted earnings-per-share of $5.48, which was $1.55 ahead of estimates, in its fourth quarter and full-year earnings report.

Revenue was up almost 7% to $11.32 billion, beating estimates by $360 million.

The increase in revenue was due to better performances from Asset and Wealth Management, as well as Platform Solutions, partially offset by lower revenues in Global Banking and Markets.

Goldman Sachs' results were better than expected on both revenue and earnings, according to its fourth quarter and full-year earnings report.

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3M is a Dow Dog with a 58-year dividend increase streak. It's a long-term dividend investor's dream come true.

In its latest earnings report, 3M announced adjusted earnings-per-share of $2.42, which was $0.11 more than expected.

The company's revenue for the fourth quarter was $7.69 billion, a decrease of 0.3% from the prior year. However, its comparable adjusted earnings-per-share totaled $9.88 in 2023.

Here's a quick breakdown of 3M's performance:

3M's revenue decrease was a minor setback, but its comparable adjusted earnings-per-share showed a healthy increase. This indicates that the company's performance was stronger than initially reported.

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Amgen Inc. (AMGN) is a top performer in the Dow Dogs category. The company's revenue grew 19.9% to $8.2 billion in the fourth quarter of 2023, exceeding expectations by $90 million.

Amgen's adjusted earnings-per-share of $4.71 was $0.12 better than estimates. This impressive performance is a testament to the company's strong financial health.

For 2023, Amgen's revenue increased 7% to $28.2 billion. This growth is a significant milestone for the company, demonstrating its ability to maintain a consistent revenue stream.

Investors can benefit from Amgen's dividend yield of 4.2%. This is a relatively high yield compared to other companies in the Dow Dogs category.

If you're looking for a stable investment with a strong dividend yield, Amgen Inc. (AMGN) is definitely worth considering.

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Cisco Systems is a global leader in high-performance computer networking systems, with its routers and switches connecting networks worldwide through the internet.

The company went public on February 16th, 1990, and today employs over 79,000 people.

Cisco generates $54 billion in annual revenues.

On February 14th, 2024, Cisco reported a 5.9% decrease in revenue to $12.8 billion, but still beat expectations by $100 million.

Adjusted earnings-per-share of $0.87 was $0.03 above estimates, despite being lower than the prior year's $0.88.

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International Business Machines (IBM) is a global information technology company that provides integrated enterprise solutions for software, hardware, and services.

IBM reported solid results for Q4 2023 and the full year on January 24th, 2024, with company-wide revenue rising 4% to $17,381M from $16,690M.

The company's focus is on running mission-critical systems for large, multi-national customers and governments, and it typically provides end-to-end solutions.

IBM has four business segments: Software, Consulting, Infrastructure, and Financing.

The strong U.S. dollar is causing a 1.1% headwind on IBM's revenue and earnings.

Here's a breakdown of IBM's key financials:

IBM's dividend yield is 3.7%, making it an attractive option for income investors.

Chevron Corporation (CVX) is one of the largest oil majors in the world.

The company's earnings come mainly from its upstream segment, which accounts for a higher crude oil and natural gas production ratio of 61/39.

Chevron's earnings-per-share grew 13% sequentially, from $3.05 to $3.45, thanks to a slight improvement in the price of oil and 7% production growth.

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The company exceeded analysts' consensus by $0.23, thanks to its financial results for the fourth quarter of fiscal 2023.

Chevron prices some natural gas volumes based on the oil price, making it more leveraged to the oil price than its peers.

Chevron's financial results were boosted by production cuts by OPEC and Russia, which triggered a slight improvement in the price of oil.

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The Dogs of the Dow screening model is a straightforward approach that focuses on the highest-yielding stocks in the Dow Jones Industrial Average. The model identifies the top 10 stocks with the highest yields.

To implement the model, you'll need to invest an equal dollar amount in each of the 10 highest-yielding Dow stocks. The model doesn't specify a minimum or maximum amount to invest, but it's essential to rebalance the portfolio every year to maintain the equal dollar amount in each stock.

Here's a summary of the key criteria for purchase:

The model's simplicity is part of its appeal, and it's a great way to generate strong returns while minimizing risk. By focusing on dividend stocks, you'll also have a steady income stream to supplement your investments.

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Verizon Communications is one of the largest wireless carriers in the country, covering ~300 million people and 98% of the U.S.

Its network provides wireless services that contribute three-quarters of all revenues, with broadband and cable services accounting for about a quarter of sales.

Revenue decreased 0.6% to $35.1 billion in the fourth quarter, but this was $550 million more than expected.

Adjusted earnings-per-share of $1.08 compared unfavorably to $1.19 in the prior year, but this was in-line with estimates.

Revenue fell 2.1% to $134 billion for the year, while adjusted earnings-per-share of $4.71 was down from $5.18 a year ago.

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The Dogs of the Dow screening model is a simple yet effective way to invest in dividend stocks. It involves investing an equal amount of money in the 10 highest-yielding Dow Jones industrial stocks.

To use this model, you need to rebalance your portfolio every year by investing in the 10 highest-yielding stocks. This means selling stocks that have dropped off the top-10 yields list and replacing them with new additions.

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Transaction costs can vary depending on the size of the trades, but using low-cost discount brokers can help keep costs down.

The model is designed to be low-risk and provide strong returns over the long term. By focusing on dividend stocks, you can generate income while also potentially profiting from above-average dividend yields.

Here's a table summarizing the rebalancing process:

By repeating this process every year, you can potentially take advantage of temporary price dislocations and an eventual recovery in the stock market.

The Dogs of the Dow strategy can result in wildly different outcomes from year to year.

In 2018, the Dogs of the Dow portfolio generated 27% in total returns, outperforming the Dow's 21% returns. This was largely due to four of the Dogs returning more than 45%.

The results in 2019 and 2020 were not as favorable, with the Dogs of the Dow portfolio generating 18.7% and (7.9%) in total returns (losses) respectively, while the Dow returned 25.3% and 9.7% in those years.

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In 2021, the Dogs of the Dow once again outperformed, with 25.3% in total returns, compared to 21% for the index.

The portfolio is rebalanced and reallocated every year, which can lead to significant tax costs weighing on realized returns.

Here are the Dogs of the Dow stocks from 2018, including their 2018 returns:

This list shows the 9 stocks that made up the Dogs of the Dow portfolio in 2018.