The 2013 Dogs of the Dow

Giovanny Moreano | CNBC

"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.

Another permutation suggests dropping the lowest priced, but highest yielding Dog out of concern that there may be a reason why the yield is so high.

The strategy worked in the past two years. The 10 companies that made it to the list at the beginning of 2012 are up about 10 percent, adjusting for dividends, compared to a 7 percent increase for the index.

Ahead of 2013, here is a look at the highest yielding stocks in the Dow.

McDonald's and Hewlett-Packard are the new additions to the 2013's Dogs, replacing Procter & Gamble and Kraft Foods, which is no longer a Dow component.