2022’s Dogs of the Dow

2022’s Dogs of the Dow

An article in Financial Advisor portends this year’s “Dogs of the Dow,” the theory that the 10 stocks in the DJIA that end the previous year with the highest yields will outperform the index the next year. It should be said, however, that there is a high expectation that higher-yielding stocks will produce fat dividends in 2022 as the economy continues to rebound.

Here are the likely Dogs of the Dow for 2022:

10. JPMorganChase (Dividend Yields 2.5%): The nation’s largest global bank is expected to benefit from rising interest rates this year.

9. Intel (Dividend Yield: 2.7%): Although Intel has been outpaced by some smaller competitors, and production problems persist in the semiconductor industry, they will still enjoy high demand this year, along will all chip manufacturers.

8. Coca-Cola (Dividend Yield: 2.9%): As restaurants, movie theaters, and sporting events reopen, Coca-Cola could see strong sales in those avenues, which brings in 40% of their overall revenue.

7. Amgen (Dividend Yield: 3.5%): Though largely absent from the Covid-19 vaccine playing field, Amgen also faces patent expiration complications.

6. Merck (Dividend Yield: 3.6%): Though overshadowed by bigger rivals like Pfizer, Merck is notably developing treatments for Covid-19.

5. Walgreens Boots Alliance (Dividend Yield: 3.8%): Walgreens is well positioned to benefit as their demographic ages in the U.S. and across Europe, though they face fierce competition from the likes of Walmart.

4. Chevron (Dividend Yield: 4.6%): The last remaining energy concern in the Dow’s 30 components, Chevron’s sound balance sheet makes their dividend a safe haven.

3. Verizon (Dividend 4.9%): With challenges from a range of rival streaming services, Verizon also requires significant capital infrastructure investments.

2. IBM (Dividend Yield: 5.0%): IBM has been working to reinvent itself as viable player in the crowded fields of software and information services as its mainframe computer business continues to decline. Dow (Dividend Yield: 5.1%): Over the last 10 years, Dow has restructured several times and continues to reconfigure its business to compete in the ESG movement