Dogs of the Dow

A novel idea introduced by Michael O'Higgins is to buy from the following blue chip list (Dow Jones Industrial Average Stocks with the lowest price/earnings ratio, highest dividend yield, and lowest price) to be held for a year. After a year has passed, check the list again and sell the stocks that are not considered a "Dog". The premise is to invest in stable blue chip companies that have a higher potential to increase their share price. It is the equivalent to bargain basement shopping of stocks. For the past several years, this strategy has beaten the standard market gain with approximately 18% annual returns.

Dogs of the Dow as of 06/19/2007


Symbol   Company Name  Last Price  Current Dividend Yield  Yr P/E
PFE Pfizer Inc. 26.21 4.38 12.2
C Citigroup Inc. 54.26 4 12
MO ALTRIA GROUP 69.52 3.91 16.4
VZ Verizon Communications Inc. 43.07 3.77 18
T AT&T Inc. 40.24 3.53 14.8
JPM JPMorgan Chase & Co. 50.85 3.01 11.2
MRK MERCK AND CO INC 50.32 3 17.3
GE GENERAL ELECTRIC 39.29 2.94 17.2
GM GENERAL MOTORS 34.52 2.89 10.8
DD DU PONT DE NEMOURS 52.21 2.88 16.3
JNJ Johnson & Johnson 62.42 2.65 15.4
KO The Coca-Cola Company 51.39 2.64 20
HD The Home Depot, Inc. 38.27 2.37 14.6
PG PROCTER GAMBLE 61.82 2.24 20.4
MMM 3M Company 87.82 2.19 18.2
MCD McDonald's Corporation 52.48 1.92 19.3
INTC Intel Corporation 24.1 1.86 22.5
CAT Caterpillar Inc. 82.49 1.78 14.7
WMT Wal-Mart Stores, Inc. 48.81 1.78 15.6
UTX United Technologies Corporation 71.72 1.78 17.2
HON Honeywell International Inc. 57.87 1.7 18.7
AA Alcoa Inc. 41.58 1.64 12.7
XOM Exxon Mobil Corporation 85.84 1.63 12.9
IBM International Business Machines Corp. 106.5 1.52 15.4
BA The Boeing Company 96.92 1.43 19.9
MSFT Microsoft Corporation 30.46 1.31 20.5
AIG AIG-AMERIC.INT.GRP 72.61 1.1 11.1
AXP American Express Company 63.15 0.94 18.2
DIS The Walt Disney Company 34.76 0.9 18.4
HPQ Hewlett-Packard Company 45.9 0.7 16.6