For investors looking to build wealth with blue-chip dividend stocks, few strategies have stood the test of time like the Dogs of the Dow.
The simple approach focuses on buying the 10 highest-yielding stocks in the Dow Jones Industrial Average at the beginning of each year and holding them for 12 months. Historically, the strategy has generated competitive returns, strong dividend income, and downside protection during volatile markets.
After another solid showing in 2025, the Dogs of the Dow are once again proving their value in 2026, with several of this year’s top-yielding Dow components already posting impressive gains. Here’s a closer look at how the strategy performed last year, how it’s doing so far in 2026, and why income-focused investors continue to rely on this time-tested investing approach.
For 2025, here’s how the Dogs of the Dow did.
That’s not bad at all.
Plus, once you factor in the yields for each, the Dogs outperformed the Dow Jones.
Dogs of the Dow Off to Strong Start in 2026
As for 2026, here’s how the Dogs of the Dow have performed to date.
- Verizon (VZ), which yields 6.51%, ran from $39.48 to a current price of $43.52.
- Chevron (CVX), which yields 4.2%, ran from $149.32 to $169.15.
- Merck (MRK), which yields 2.64%, ran from about $104.01 to $128.88.
- Procter & Gamble (PG), which yields 2.95%, ran from $141.04 to $147.81.
- Amgen (AMGN), which yields 2.8%, ran from $324.06 to $359.76.
- Coca-Cola (KO), which yields 2.57%, ran from $68.95 to $82.77.
- Nike (NYSE: NKE), which yields 3.98%, fell from $63.01 to $41.24.
- UnitedHealth (NYSE: UNH), which yields 2.22%, ran from $326.43 to $419.04.
- Home Depot (NYSE: HD), which yields 2.67%, ran from $338.61 to $348.76.
- Johnson & Johnson (JNJ), which yields 2.09%, ran from $204.55 to $256.24.
Why this Strategy Still Works
Historically, the Dogs of the Dow do very well.
The 2024 Dogs of the Dow underperformed the major indices in 2024. However, with dividends, investors still did well for the year.
The 2023 Dogs of the Dow returned an average of 10.1%, which came in below the 14.4% return on the Dow Jones’ Industrials. Still, with the appreciation in most of the 2023 Dogs coupled with dividends, investors still did well overall.
The 2022 Dogs of the Dow beat the major indices, even in a rough year.
In fact, while the Dogs of the Dow stocks fell 1.6% on the year, once you add in the dividend payouts, the Dogs returned 2% on the year. And while 2% may not sound like a big win, consider that, in 2022, one of the worst years on record since 2008, the NASDAQ lost 33%. The S&P 500 lost 19%. The Dow Jones lost about 9%.
In 2021, the Dogs of the Dow returned about 16.3%. While 2020 wasn’t a great year for the Dogs, most other years have done very well. In 2019, the Dogs were up 20%. In 2018, they were up about 1%, but still beat the Dow, which fell close to 6%. In 2017, the dogs were up 19%. In 2016, they were up 16%.
The Long-Term Outlook
With several of the 2026 Dogs already delivering solid gains and continuing to pay dependable dividends, the strategy remains an appealing option for investors seeking income, stability, and long-term growth. As always, diversification and patience are key, but for those looking for a straightforward, historically successful investing strategy, the Dogs of the Dow continue to earn their place in a well-balanced portfolio.
