2015 Dogs Of The Dow

If you’re looking for high-yielding, blue chip American stocks to buy 2015, maybe it’s time to pick up some dogs. Of course, I’m not talking about making a trip to the pound; I’m talking about the Dogs of the Dow.
What are the Dogs of the Dow?
As most investors know, the 30 components of the Dow Jones Industrial Average are 30 of the largest and most significant American companies that trade on the New York Stock Exchange and Nasdaq. The Dogs of the Dow are a selection the 10 Dow stocks with the highest dividend yields at any given time. As simple as the selection process sounds, the Dogs of the Dow have outperformed the S&P 500 on a one-year, three-year, five-year, ten-year and twenty-year basis.
Why do the dogs outperform?
There is wide debate as to whether the Dogs of the Dow significantly outperform the overall market or whether their outperformance has simply been coincidence. However, the general idea of the trading strategy is that the Dow stocks with the highest yields have likely had their yields inflated due to poor stock performance in previous years. Presuming that companies included in the Dow 30 are all solid companies, the lagging stocks make for good investments.
New 2015 dogs
All the members of the 2015 Dogs of the Dow are included in the chart below.

Only three of the ten 2015 Dogs are new: Caterpillar Inc CAT, Exxon Mobil Corp XOM, and The Coca-Cola Co KO. The three 2014 Dogs that dropped from the list are Intel Corp INTC, Cisco Systems CSCO, and Microsoft Corp MSFT.

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