The Dogs of the Dow 2023

dogs of the dow 2023

Walgreens is facing difficult comparisons and has guided toward earnings-per-share of $4.45 to $4.65 for the fiscal year. At the midpoint, this would be a decline of almost 10% from the prior fiscal year. Walgreens Boots Alliance is the largest retail pharmacy in both the United States and Europe. Through its flagship Walgreens business and other business ventures, the company employs more than 315,000 people and has more than 13,000 stores.

IBM returns as a Dog of 2023 despite rising 5.4% in 2022, due to its rich 4.7% dividend yield. And Amgen, following a nearly 17% rise in 2022, is a Dog for 2023 with a yield of 3.3%. Company-wide revenue of $16,690M was flat from the prior year, while diluted adjusted earnings per share rose 7% to $3.60 from $3.35 year-over-year. Diluted GAAP earnings per share increased 15% to $3.13 in the quarter from $2.72 in the prior year.

Revenue was up 15% for RedHat, 9% for Automation, 8% for Data & AI, and 10% for Security. Consulting revenue increased 0.5% to $4,770M from $4,746 due to a 7% rise in Business Transformation, 10% in Technology Consulting, and 12% in Application Operations. Adjusted earnings-per-share came to $0.46, which was 11 cents below estimates. Revenue decreased by 18% to $11.9 billion and missed expectations by nearly $200 million. Earnings-per-share totaled $3.32, but this was well off consensus estimates of $5.97 and below last year’s total of $10.81. Goldman Sachs was founded in 1869 and has grown into one of the world’s leading financial companies over the last 150+ years. has an advertising relationship with some or all of the offers included on this page, which may impact how, where, and in what order products and services may appear. The College Investor does not include all companies or offers available in the marketplace. And our partners can never pay us to guarantee favorable reviews (or even pay for a review of their product to begin with). The net gain/loss estimates above did not factor in any foreign or domestic tax problems resulting from distributions. Consult your tax advisor regarding the source and consequences of «dividends» from any investment.

Dogs of the Dow #10: JPMorgan Chase

During that period, the stock price fluctuated between $49 and approximately $60. We then held onto the stock until July 2018 and closed the position when trading in the extremely overbought ranges. One could have exited the position in the $82-$85 range, realizing a gain of 50%. And unlike the original theory, we don’t hold onto stocks for a year. Instead, we have them until they reach the overbought range, and then we close the position out and find a new replacement.

As you know, the Dow Jones Industrial Index (the Dow or DJIA) is one of the most widely-followed benchmark for tracking U.S. stocks and stock market performance. It is made up of 30 large publicly traded companies in the U.S., which are selected by Dow Jones & Company based on their market capitalization, liquidity, and industry sector representation. That’s miles ahead of the S&P 500’s nearly 20% drop and much better than the 8.8% drop by the Dow Jones. The Dogs of the Dow strategy produced a price change of -1.8%, beating the Dow’s performance by about 7 percentage points.

The other three, Chevron (CVX), Amgen Inc (AMGN), and The Goldman Sachs Group (GS) need prices to drop $78 to $222 before they reach the dogcatcher ideal level. The result has been shareholders selling Intel stock, and the stock price has dropped to levels last seen in 2014 to 2015. Still, the stock is yielding more than 6.5%, well above the five-year average and more than three times the dividend yield of the S&P 500. Verizon increases its dividend by about 2% annually and has done so for the past 19 years. Our list of MLP stocks includes dividend yields, Dividend Safety Scores, and analysis of all 40 MLPs, including the 5 best MLPs for income.

Final Thoughts on Dogs of the Dow 2022

Verizon provided guidance for 2023 as well, with the company expecting adjusted earnings-per-share of $4.55 to $4.85 for the year. At the midpoint, this would be a 7% decrease from the prior year. 3M provided an outlook for 2023, with the company expecting adjusted earnings-per-share of $8.50 to $9.00. On a comparable basis, adjusted earnings-per-share for 2022 was $9.88. We project that IBM will see earnings-per-share grow 4.1% to $9.50 in 2023. The decline in sales was due to lower revenue in all operating segments, as the company noted slower economic activity globally and destocking customer behavior.

  • Second, a stock often has a high dividend yield because the price has fallen.
  • Another reason why the DJIA is used for the Dogs of the Dow strategy is that every stock in the index pays a dividend.
  • Only two of 222’s Dogs—Coca-Cola KO
    (KO) and Merck (MRK)—cycled out, replaced by JPMorgan Chase JPM
    (JPM) and 2021 Dog Cisco Systems CSCO
  • Of course, you and I know that high yields don’t mean a stock is a value—sometimes they just mean a stock is cheap.
  • That’s roughly double the average 2.2% yield of the 30 stocks in the Dow.

Broadband had 416K net additions during the quarter, which included 379 fixed wireless net additions. Sales from continuing operations grew 3% over the prior year’s quarter. However, adjusted earnings-per-share slumped 27% year-over-year to $1.16 from $1.59, mostly due to high Covid-19 vaccinations in the prior year.

Monthly Dividend Stocks List: All 58 Ranked and Analyzed

Usually, a stock on the Dogs of the Dow list is undervalued compared to the broader market. It follows a strategy of investing in temporarily undervalued stocks. To successfully implement this strategy, investors must be willing to go against the crowd and buy stocks that are out of favour with the market.

Verizon is the highest dividend yielding Dow stock at the close of 2022 with a dividend yield of 6.6%. At the time, the book made quite a splash, including having a few mutual funds based on the strategy. Because the technique, which I’ll describe below, seemed to work well. According to them, following the method from 1973 to June 1991
would have made a cumulative profit of 1,753.14% compared to the complete Dow return of 559.31%, not including commissions and taxes. As fantastic as that seems, it’s just 16.61% annually
for the Dogs and 10.43% for the regular Dow stocks.

Verizon sports an eye-popping $136 billion in debt, but is a strong enough credit to be able to refinance this out into the future ad infinitum. For this reason, and its strong cash flows, Value Line rates the stock A++ for financial strength, a designation that no other telecom has, including AT&T (T). Remember, it was just three years ago that Dow was spun out of DuPont (DD), and is still finding its sea legs.

Given that the DJIA represents some of the largest companies in the world, its “dogs” are typically companies with strong track records that have hit temporary problems. The Dogs of the Dow website states since 2000, the strategy has had an average total return of ~8.7% when dividends are reinvested. This return is compared to the average annual returns of ~7.9% for the Dow 30 during the same period. In addition, the S&P 500 Index has returned ~7.6% in the same stretch. Notably, this period includes the dot-com bust, the Great Recession caused by the sub-prime mortgage crisis, the bear market during the early stages of the COVID-19 pandemic, and the 2022 bear market.

The June, 2023 Dow 30 By Yield

Intel, 3M, and Walgreens were the three worst performing stocks on this list, as Intel was down nearly 50% on the year. That said, Intel introduced Sapphire Rapids in its Xeon series of chips for data centers. Next, Intel’s impending launch of Intel 4, 7nm fabrication will make the firm’s chips more competitive versus AMD’s chips. Finally, Intel is spending tens of billions of dollars to expand its fab services with new plants in Arizona and Ohio. Next, the ARM-based chips produced by Advanced Micro Devices are eating into Intel’s PC and server market share.

dogs of the dow 2023

The following table lists 2023’s Dogs of the Dow in descending order of dividend yield and includes the stock’s performance for all of 2022 and for the fourth quarter. The good news is that shares of all 10 stocks rose in the fourth quarter. The bad news is that the gains highlight just how poorly stocks performed in 2022.

Stocks listed above were suggested only as possible reference points for your Dow dividend dog stock purchase or sale research process. The lone communication services sector member took first place, Verizon (VZ)[1]. This was followed by two healthcare stocks in second and seventh places, Walgreens Boots Alliance [2] and Amgen Inc [7].

dogs of the dow 2023

The dividend yield of 4.7% is among the highest of the Dividend Aristocrats, making IBM attractive. The firm is committed to the dividend and is one of the longest-paying dividend stocks. Also, although the current raises are meager, IBM raises the dividend annually. IBM is undervalued compared to its peers based on the P/E ratio. An investor who wants to practice the Dogs of the Dow strategy will find the 10 highest dividend-yielding stocks at the beginning of the calendar year.

As a result, Verizon is an excellent choice for investors seeking income at a reasonable price. Thousands of dividend investors trust our online tools and research to track their portfolios, avoid dividend cuts, and achieve lasting financial freedom. Grab the 2023 list of all 58 monthly dividend stocks, with each company researched and ranked.

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