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Dogs Of The Dow Performance: January 2019

|About: SPDR Dow Jones Industrial Average ETF (DIA), DJI, Includes: DJII, IBM, PFE, SPY

The Dogs of the Dow outperformed the Dow and the S&P 500 in 2018.

This article lists the current Dogs of the Dow and their recent returns including the month January 2019.

The Dogs of the Dow is an investment strategy and defined by Michael O’Higgins in his book Beating the Dow.

The Dogs of the Dow investment strategy as defined in 1992 is still beating the Dow. Looking back over a longer period of time (2006-2018), the average annual return of the DJIA was 9.73% versus 11.16% for the Dogs of the Dow strategy. The small Dogs of the Dow are over time slightly better with an average annual return of 11.81%. The out-performance in percentages is 1.43% for the general Dogs strategy and 2.08% for the small dogs. Both strategies outperform 8 out of 13 years.

Performance Dogs of the Dow in 2018

The  ten Dogs of the Dow ended in 2018 just in positive territory with a performance of +0.02%. The small Dogs of the Dow were even up with 0.81%. The Dow Jones DIA and the S&P 500 SPY were down over 2018, as shown in the chart below.

Data by YCharts

Dogs January 2019 performance

Seven out of the ten Dogs started January 2019, with a positive performance.

The price performance of the ten dogs of the dow is +4.99% and +0.43% dividend. This makes a total return of 5.42% for January 2019. The “small dogs” realized a total return of +3.77%.

Compared to the Dow Jones Index (DJI) +7.29% and the S&P 500 (SPY) also up 8.01%, the Dogs of the Dow underperformed.

Data by YCharts

The table below lists all 10 dogs of the dow 2019 companies, sorted descending by dividend yield and lists returns over last month, 3-, 6-, and 12-month periods.


IBM (IBM) is the strongest performer +18.25% and has also the highest dividend yield of 4.67%. Pfizer (PFE) lost in January -2.75%.

Since the Dogs of the Dow investment strategy is based on a one year cycle, just stick to the plan, if your are trying to beat the Dow.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.