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'Dividend Investing Strategy: Exploring the Benefits of the 'Dogs of the Dow'

 
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Exploring the benefits of the 'Dogs of the Dow' dividend investing strategy.

Description: A chart showing the performance of the Dogs of the Dow investment strategy.

,"I'm currently using a dividend investing strategy for the majority of my retirement portfolio and I'm very pleased with the results. I'm able..." One conservative dividend investing strategy that has worked extremely well over the years is the 'Dogs of the Dow' strategy. (Getty Images). Although the dividend yield is tempting, investors need to dig deeper into what makes the 'Dogs of the Dow' investment strategy attractive. The main purpose of a high dividend yield portfolio is not to merely chase dividend yields, but rather to think about the stocks you decide to invest in and the individual company fundamentals.

An upside to adding dividend stocks to your retirement portfolio: they can provide a steady income stream—which is especially important as you age and are no longer able to work—as well as the potential for capital appreciation. Whether you're starting to invest for retirement or simply looking for a more conservative investment strategy, dividend stocks can be a good option.

I don't want 100% of my assets outside of real estate tied to an S&P index fund. I have created a personal investment strategy that works to “catch” the “Dogs of the Dow”. This strategy involves buying the 10 stocks of the Dow Jones Industrial Average (AMEX:DJIA) with the highest dividend yield at the beginning of each year. Furthermore, my dog catching is, by method, a contrarian investing strategy and that can rub some investors the wrong way. It is most useful for long-term investors who are patient and consistent.

Pursuing a dividend investing strategy can help protect your retirement portfolio. Whether you choose to invest in stocks or through low-fee index funds, regularly receiving dividends can provide a steady income stream and make it easier to manage your retirement savings. As long as you make sure to diversify your retirement portfolio and practice due diligence, dividend investing can be a great way to ensure a comfortable retirement.

This is why dividend investing is a popular strategy. It's one that I'm utilizing. Outside of ETFs in my retirement account, I own no stocks, but I do invest in a select few dividend stocks. I look for highly rated companies with a long history of paying out dividends and a good track record of increasing the dividend amount over time. I'm currently using a dividend investing strategy for the majority of my retirement portfolio and I'm very pleased with the results. I'm able to sleep soundly at night knowing that my retirement savings are growing.

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dividend investingdogs of the dowretirement portfoliostocksetfsdividend yieldlong-term investingcapital appreciationAMEX:DJIA
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