I have always been against using the “Dogs of the Dow” strategy for the simple reason that the strategy itself is just too simple. Doing even basic research into the companies you’re buying (as well as not relegating yourself to a small universe, which doesn’t contain the best dividend paying stocks) will yield much improved returns over time.
Specifically, investors can do much better by focusing on a larger universe (including international stocks) and looking at more parameters (dividend yield alone is not sufficient).
…But don’t take my word for it.
The Dividend Aristocrats List is an obvious place to start but our Dividend Aristocrats Select List is a list of the best dividend stocks (from the Dividend Aristocrats list) and is a much better starting point for those who just want to “point and click” their way to a portfolio that will grow over time and generate a robust income stream…