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2012 Dogs of the Dow

Friday, 30 Dec 2011 | 4:52 PM ET
GK Hart | Vikki Hart | Stone | Getty Images

"Dogs of the Dow" or "High Yield 10" is a popular investment strategy that recommends buying the Dow stocks with the 10 highest dividend yields at the beginning of the year.

The basic strategy suggests putting an equal amount of money into each of the 10 stocks; although there have been variations that include proportionate investments in the Dogs weighted by share price.

Other permutations suggest dropping the lowest price / highest yielding Dog out of concern that the there may be a reason why the yield is so high.

In 2011, the Dogs of the Dow strategy worked. The 10 companies that made it to the list at the beginning of 2010 are up about 17 percent, adjusting for dividends, compared with a 1.7 percent loss for the non-dog stocks and a 5 percent increase for all 30 Dow components.

Ahead of 2012, here is a look at the highest yielding stocks in the Dow .

Procter & Gamble and General Electric, a minority stakeholder of NBC Universal / CNBC, are the new additions to the 2012's dogs, replacing McDonald's and Chevron.

In 2011, the Dogs of the Dow strategy worked. The 10 companies that made it to the list at the beginning of 2010 are up about 17 percent, adjusting for dividends, compared with a 1.7 percent loss for the non-dog stocks and a 5 percent increase for all 30 Dow components.

  Price   Change %Change
DJIA
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GE
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CVX
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DD
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INTC
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JNJ
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MDLZ
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PFE
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VZ
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