The Potential Dogs of the Dow for 2022

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FILE PHOTO: The Charging Bull or Wall Street Bull is pictured in the Manhattan borough of New York City

Every January, one of the best strategies is to invest in the top Dogs of the Dow.

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%.

Better, all of the Dogs pay dividends.

As for the 2021 Dogs of the Dow, most are doing well so far.  Since January 2021:

  • Chevon (CVX) with a yield of 6.05% — ran from $82 to $118
  • IBM (IBM) with a yield of 5.23% – ran from $120 to $131
  • Dow (DOW) with a yield of 5.11% – ran from $54 to $56
  • Walgreens (WBA) with a yield of 4.72% – ran from $40 to $50.72
  • Verizon (VZ) with a yield of 4.27% — fell slightly from $57 to $52.56
  • 3M (MMM) with a yield of 3.37% – ran from $168 to $176.31
  • Cisco (CSCO) with a yield of 3.23% — ran from $44 to $63.37
  • Merck (MRK) with a yield of 3.24% — ran from $75 to $76.23
  • Coca-Cola (KO) with a yield of 3.07% — ran from $52 to $58.53
  • JP Morgan (JPM) with a yield of 2.89% — ran from $123 to $158

Not bad at all.  Not only did most move higher, all paid dividends.

As for the Dogs of the Dow 2022, pay close attention to:

  • Verizon (VZ)
  • Dow Inc. (DOW)
  • IBM (IBM)
  • Chevron Corp. (CVX)
  • Walgreens Boots Alliance (WBA)
  • Merck (MRK)
  • 3M (MMM)
  • Amgen Inc. (AMGN)
  • Coca-Cola (KO)
  • Intel Corp. (INTC)

There are two ways to trade the Dogs of the Dow 2022.

One is to buy an equal amount of each, and cash out by the end of 2022.  Two, investors can always buy long-dated call options on each as well.