The Dogs of the Dow is a well-known strategy that was first published in 1991 by Michael Higgins. The plan seeks to maximize the yield of investments by buying the ten highest-paying dividend stocks available from the Dow Jones industrial average each year. The highest-yielding stocks are also the lowest-priced stocks in the venerable average, as the lower a stock (or bond) goes in price, the higher the attached yield or coupon becomes.
We screened the Dogs of the Dow, and three of the highest-yielding stocks in the group are cheap and pay big passive income dividends.
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