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Fund Manager Suggests Running With The 'Dogs'

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Dogs are loyal. Dogs are helpful. That's why fund manager Neil Hennessy recommends the "Dogs of the Dow" for portfolio stability.

The "dogs" describes an investment strategy in which an investor buys in equal dollar amounts the ten stocks in the Dow Jones Industrials Average with the highest dividend yield at the beginning of the year, then readjusts the portfolio every year.

This year, those stocks were Citigroup, Pfizer, Altria, Verizon, AT&T, JP Morgan, Du Pont, General Motors, Home Depot, and CNBC.com parent General Electric.

Symbol
Price
 
Change
%Change
SC0Y
---
DD
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GM
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HD
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MO
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PFE
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T
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VZ
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"People are looking for safety, liquidity, and yield," Hennessy told CNBC. "It doesn't mean the investor's right, but if that's what they're looking for, then the Dogs of the Dow is the place to be."