This blue-chip dividend strategy continues to beat the market


All year long, we have been keeping an eye on the ten stocks that make up this year's " Dogs of the Dow ", and as expected the group finished the second quarter well ahead of the overall Dow Jones.

The last time we checked in on our group of stocks was in mid-June, when they were collectively up 7.7% on the year, versus a gain of just 1.4% for the Dow Jones, giving the group a 6.3% advantage. As of the end of the second quarter, our group had extended its lead even further.

As of close of trading on June 30, the " Dogs of the Dow " stocks were up 8.1%, while the Dow Jones was sitting on a year-to-date gain of 1.5%, so the difference had spread to 6.6%.

In case you have not been following on series on the "Dogs of the Dow" and are unfamiliar with the basic strategy, it is simply the process of buying an equal dollar amount of the top ten yielding stocks in the Dow Jones Industrial Average at the start of the year, and holding on to all ten positions for the full year year. In many years the strategy has been a successful way to beat the broader market, but there have also been cases where the strategy failed to keep pace with the Dow.

So far this year, each time we have checked in this year's group, it has been outpacing the Dow Jones, and this week we are going to look at how each of the ten stocks closed out the first half of the year, and discuss their momentum headed into the third quarter.

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