Are 'Dogs of the Dow' Paying Off?

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The Dogs of the Dow strategy has worked so far this year, with the 10 companies that made the list outperforming the non-dog stocks by 15 percent, adjusting for dividends.

"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.

McDonald's has been the best performing Dog of the Dow, up 25 percent year-to-date, followed by Intel, with a gain of 21 percent.

Among the non-dog stocks, IBM has taken the lead as the best performing Dow component, up nearly 30 percent.

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