Dogs Of The Dow

DOTW is an investment strategy that just suggests you buy the worst few performers in the Dow 30 each year—and those dogs, i.e. the stocks everyone hated and sold down aggressively last year, should do better than the overall basket of 30 stocks this year.

The notion is that most of these companies are mature, in slow-growing industries, and a lot of their interest to investors comes from their dividend yield more than from their intrinsic growth. They kind of "regress to the mean" (or the nice).

So the dogs usually have the highest yield...and as long as the dividends are safe from being cut, then the dogs theory is really more of a cash dividend plus recovery story than it is a long-term buy and hold strategy, which would just be like...The Cool Cats of the S&P...or something like that.