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Contrarian investment strategy outpaced the Dow Jones Industrial Average for the first time since 2018<\/p>\n\n\n\n
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By Hardika Singh<\/a><\/p>\n\n\n\n Investors\u2019 Best Friend in 2022: The Dogs of the Dow<\/p>\n\n\n\n Jan. 5, 2023 8:00 am ET<\/p>\n\n\n\n The Dogs of the Dow broke away from the pack in 2022. <\/p>\n\n\n\n The popular contrarian investment strategy outpaced the Dow Jones Industrial Average last year for the first time since 2018, while investors sought havens during the wild ride in markets.<\/a><\/p>\n\n\n\n The Dogs strategy involves buying the 10 stocks with the highest dividend yields of the 30 Dow components at the beginning of a year and holding them over the next 12 months. The group of stocks is rebalanced at the end of every year to maintain an investment in the top 10 dividend payers. That gives investors the benefit of high dividend yields\u2014which is typically a function of low stock prices.<\/p>\n\n\n\n Propelled by double-digit gains in shares of Chevron<\/a> Corp., Amgen<\/a> Inc. AMGN -0.36%decrease; red down pointing triangle<\/a> and others, the 2022 Dogs rose 2.2%, including dividends, while the blue-chip index as a whole fell 6.9%<\/a>.<\/p>\n\n\n\n <\/p>\n\n\n\n The trade was one of the few winners in a year marked by red-hot inflation<\/a>, higher interest rates and worries about a potential recession<\/a>. The Dow, along with the broader S&P 500 and Nasdaq Composite indexes, suffered its worst year since 2008. <\/p>\n\n\n\n \u201cYield last year was king,\u201d said Dan Genter, chief executive of Genter Capital Management. \u201cIt\u2019s an old dog, not a new trick.\u201d <\/strong><\/p>\n\n\n\n As the Federal Reserve raised interest rates<\/a>, investors generally abandoned the flashy technology stocks<\/a> that propelled the stock market\u2019s monster run of the previous decade. <\/p>\n\n\n\n <\/p>\n\n\n\n Quoted from The Wall Street Journal: Contrarian investment strategy outpaced the Dow Jones Industrial Average for the first time since 2018 By Hardika Singh Investors\u2019 Best Friend in 2022: The Dogs of the Dow Jan. 5, 2023 8:00 am ET The Dogs of the Dow broke away from the pack in 2022. The popular contrarian investment …<\/p>\n
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