This high-yield dividend strategy is still beating the market


We last checked in with the "Dogs of the Dow" back in July, and noted that as of the end of the second quarter, the group had outpaced the Dow Jones by a margin of 6.6%. While the last month has seen the market pull back from its record highs, our group of stocks has remained strong, and has actually extended its margin over the  Dow.

As of the close of trading on August 14, the Dow Jones had a 0.5% gain on the year. Our stocks, on the other hand, have managed to appreciate, on average, 8.7%, extending their lead on the index to 8.2%.

In review, the basic premise of the " Dogs of the Dow " strategy is to invest an even dollar amount in each of the ten stocks in the Dow Jones with the highest dividend yield at the beginning of the year, and then hold all ten positions, regardless of market conditions, through the entire year. While the strategy does not always produce market-beating returns, more often than not it has outpaced the market, and so far this year the strategy has held its own.

Of course, some of the previous winners have given back some of their earlier year gains, while others have managed to trade higher over the last six weeks. Let's take a look at each of the ten stocks in the group, and see where they stand at the current time.

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