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.
The Dogs of the Dow Are Having a Strong Year
Here’s a closer look at how the strategy is performing as of Oct. 12, 2026:
- Verizon (NYSE: VZ), which yields 6.79%, ran from $39.48 to a current price of $41.65
- Chevron (NYSE: CVX), which yields 3.36%, ran from $149.32 to $212.
- Merck (NYSE: MRK), which yields 2.34%, ran from about $104.01 to $145.60.
- Procter & Gamble (NYSE: PG), which yields 2.88%, ran from $141.04 to $151.23.
- Amgen (NASDAQ: AMGN), which yields 2.43%, ran from $324.06 to $414.87.
- Coca-Cola (NYSE: KO), which yields 2.41%, ran from $68.95 to $88.05.
- Nike (NYSE: NKE), which yields 4.72%, fell from $63.01 to $34.71.
- UnitedHealth (NYSE: UNH), which yields 2.45%, ran from $326.43 to $379.30.
- Home Depot (NYSE: HD), which yields 3.21%, fell from $338.61 to $290.74.
- Johnson & Johnson (JNJ), which yields 2.59%, ran from $204.55 to $261.44.
Not bad at all so far.
Why This Strategy Still Works
Historically, the Dogs of the Dow do very well.
The 2025 Dogs of the Dow outperformed the Dow Jones Industrial Average of 14.92% and the S&P 500’s return of 17.88%, with a return of 18.91%.
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%.
A Simple Strategy for Long-Term Wealth
The appeal of the Dogs of the Dow comes down to simplicity. Investors get a straightforward way to focus on established businesses, collect dividends, and give out-of-favor stocks time to recover. There’s no need to predict the next hot sector or chase whatever happens to be leading the market.
Of course, a high dividend yield doesn’t automatically make a stock a bargain. A falling share price can signal real business problems, and dividend payments aren’t guaranteed. The strategy can also lag the broader market, sometimes for extended periods. That makes patience and realistic expectations essential.
Still, building wealth doesn’t always require a complicated approach. For investors who value income and a disciplined annual routine, the Dogs of the Dow offer a strategy worth understanding. The goal is to let dividends and potential share-price recoveries work together over time—and stay focused beyond any single year’s results.
