2024 dogs of the dow (fund, cash, dividend, stocks)

[mathjak107]

the dogs of the dow are the 10 highest yielding stocks in the dow .

they are also usually some of the worst performing , some last year and some for many years .

traditionally they have out performed the dow , as the worst tended to flip to do well but lately the dogs have been the dogs despite these high dividend yields .

they were absolutely horrible performers despite yields

i also included how they did last year compared to the s&p

voo s&p fund up 25.52%

so here are the 2024 dogs

WALGREENS yield 7.21% returned minus 23.53 %

VERIZON 7.13%. return 5.34%

3m 5.52%. returned .62%



dow chemical 5.03 returned .89%

IBM 4.06. returned minus 1.25%

chevron 3.98 returned minus 13.35%


AMGEN 3.14% returned 3.25%


coca cola 3.23% returned 1.51%

cisco 3.09% returned minus .02%

johnson and johnson 3.04%. returned 2.06%

[Wile E. Coyote]

So, how does it work mathjak? Say I bought $100,000 worth of CHV when it was $50 per share (2,000 shares). Say I held it and so last year how would my 3.98% dividend be calculated? Current price looks like $137 per share (2,000 shares equals $274,000.

[Lowexpectations]

Originally Posted by mathjak107

the dogs of the dow are the 10 highest yielding stocks in the dow .

they are also usually some of the worst performing , some last year and some for many years .

traditionally they have out performed the dow , as the worst tended to flip to do well but lately the dogs have been the dogs despite these high dividend yields .

they were absolutely horrible performers despite yields

i also included how they did last year compared to the s&p

voo s&p fund up 25.52%

so here are the 2024 dogs

WALGREENS yield 7.21% returned minus 23.53 %

VERIZON 7.13%. return 5.34%

3m 5.52%. returned .62%



dow chemical 5.03 returned .89%

IBM 4.06. returned minus 1.25%

chevron 3.98 returned minus 13.35%


AMGEN 3.14% returned 3.25%


coca cola 3.23% returned 1.51%

cisco 3.09% returned minus .02%

johnson and johnson 3.04%. returned 2.06%

The dividend chasers often play well behind the S&P so it’s funny to see them touting dividends while trailing 10-20% behind

[hikernut]

Just to be clear, I'm not a proponent of the Dogs strategy.

With that said, if these are the Dogs for 2024, shouldn't the metric of interest be their 2024 return?

[mathjak107]

at the end of the day the only metric that matters is total return.

dividends are not the same as interest so they really are not comparable. i know you see comparisons made but it certainly isn’t apples to apples at all.

[mathjak107]

Originally Posted by Wile E. Coyote

So, how does it work mathjak? Say I bought $100,000 worth of CHV when it was $50 per share (2,000 shares). Say I held it and so last year how would my 3.98% dividend be calculated? Current price looks like $137 per share (2,000 shares equals $274,000.

it pays 1.51 a quarter so that is 6.04 a year and you paid 50 bucks = a 12% yield .

in reality over the year chv lost over 13% including all dividends

[Wile E. Coyote]

Over the past five years, the Dogs have underperformed the S&P 500 and the Dow four times, including 2023. That slide has hurt the Dogs' relative investing stats. Over the past 20 years, from the end of 2023, the Dogs have returned just over 8% a year on average, including dividends.

[mathjak107]

they used to do better then the dow but that hasn’t been the case for years since the stocks in the dogs tend to be real stinkers and not just had a bad year.

but it is still popular to many who chase dividends and poor performance

[Wile E. Coyote]

Originally Posted by mathjak107

they used to do better then the dow but that hasn’t been the case for years since the stocks in the dogs tend to be real stinkers and not just had a bad year

Well, the little bit I was reading about it they lag because of the dividends, then it lowers the stock price, but, then it can attract buyers, rinse and repeat. They pay dividends to preserve cash for capital investment. I would think that they just cannot keep up with what happened in Tech. However, there could be a scenario where they outperform.

I remember in the one 'finance' class I had to take for my biz degree... We learned that it takes 29 stocks to be diversified. So, that may be an issue with the dog strategy as well.

My biz degree with accounting was obviously a ton of accounting, a ton of math, a ton of economics, a ton of management and just one finance class that I could remember. I was supposed to get a MS in finance to round it out but never got around to it (got run over and gave up on the pursuit of excellence -- LOL).

[GWoodle]

Originally Posted by Wile E. Coyote

So, how does it work mathjak? Say I bought $100,000 worth of CHV when it was $50 per share (2,000 shares). Say I held it and so last year how would my 3.98% dividend be calculated? Current price looks like $137 per share (2,000 shares equals $274,000.

Chevron pays dividend Feb-May-Aug-Nov around the 15th. Pays $1.51 per share. On an annual basis pays $6.04 per share. Divide the $6.04 by price to get dividend yield. Yahoo has this at 4.04%. How it works is you multiply $1.51 by the number of shares (2000).

How it works is you divide annual dividend by the price. At the same price with any dividend increase yield increases. With any cut yield declines. On a daily basis as price rises yield is lower. As price declines yield is higher. From 1000 shares multiply if you want $1510 per quarter. For 1000 shares maybe you paid $50/share or $50,000,

Dogs of the Dow failed to match Dow 30 average or S&P 500. Walgreen may be biggest dog of the bunch.

How the Dogs of the Dow work is they are the 10 stocks from the Dow 30 with the highest dividend yield. For this year Coca Cola and Johnson & Johnson are new to the list. JP Morgan and Intel escaped. Maybe JP Morgan & Intel had good 2023 compared to 2022. Your guess if Coca Cola can turn things around in 2024.