As the Dow Jones industrial average faces its first annual loss since 2008, some investors are turning to a time-tested investment strategy to harvest gains in 2016: "the dogs of the Dow."
"It's not just buying weak stocks; it's buying 10 stocks with the highest dividend yield, the presumption that Dow stocks don't cut their dividend," Cornerstone Macros' Carter Worth said on CNBC's "Fast Money."
The dogs of the Dow theory is a classic investment strategy where one invests in the 10 Dow stocks with the highest dividend yield at the end of each year and hold those stocks for exactly one year. The strategy has yielded strong gains through the years. In 10 of the last 15 years, the dogs of the Dow have outperformed the market, according to Worth.