Megaphone icon ETF Database is now VettaFi. Read More >
ETFdb Logo
ETFdb Logo
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • Entrepreneur ETF
    • Equity ETF
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Future ETFs
    • Gold & Silver Investing
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Modern Alpha
    • Multi-Asset
    • Multi-Factor
    • Nasdaq Investment Intelligence
    • Portfolio Strategies
    • Retirement Income
    • Smart Beta
    • Thematic Investing
    • Volatility Resource
  • Database
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
    • ETFs Future-Forward 2021: An iShares Investing Symposium
    • Three Themes for 2021: An iShares & MSCI Investing Symposium
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Videos & Podcasts
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. ETF Building Blocks Channel
  2. These Dogs Are Working to Kick Off 2022
ETF Building Blocks Channel
Share

These Dogs Are Working to Kick Off 2022

Tom LydonJan 31, 2022
2022-01-31

Investors looking for a shelter-from-the-storm play in early 2022 might want to consider high-dividend stocks, specifically the dogs of the Dow.

The dogs of the Dow are the 10 highest-yielding members of the Dow Jones Industrial Average at the end of a specific year. The notion is to buy those stocks in anticipation of them outperforming in the coming year.

This year’s dogs are Dow, Inc. (NYSE:DOW), International Business Machines (NYSE:IBM), Verizon (NYSE:VZ), Chevron (NYSE:CVX), Walgreens (NASDAQ:WBA), Merck (NYSE:MRK), Amgen (NASDAQ:AMGN), 3M (NYSE:MMM), Coca-Cola (NYSE:KO), and Intel (NASDAQ:INTC). Intel is the worst-performing member of that group year-to-date, but the semiconductor giant is still topping the S&P 500 by 250 basis points.

Investors looking to embrace the dogs should consider the ALPS Sector Dividend Dogs ETF (SDOG B). SDOG isn’t dedicated to the dogs of the Dow strategy. Rather, it holds the five highest-yielding stocks from 10 of the 11 GICS sectors, with real estate being the exception.

Still, that methodology turns up plenty of the dogs in SDOG. More importantly, SDOG’s strategy is working for investors this year. While the S&P 500 is off 9.2% year-to-date, SDOG is flat.

Of the 10 aforementioned dogs, SDOG is home to, in order, Dow Chemical, IBM, Amgen, Verizon, Walgreens, 3M, and Intel. Dow Chemical is the best-performing member of that group with a 6% year-to-date gain.

But now the dogs have some bite, at least in relative terms. "The Dogs so far have returned 1%, outperforming their noncanine Dow counterparts that have dropped 6%, and the S&P 500, which has retreated by 9%,” reports Steve Goldstein for MarketWatch.

Aside from the dogs, SDOG could be a winner this year due in part to its nearly 21.3% combined weight to the energy and consumer staples sectors — two groups with solid inflation-fighting capabilities. The S&P 500 allocates less than 10% of its weight to those two sectors.

With a dividend yield of 3.25%, SDOG could prove durable in the face of rising interest rates because even with rate hikes coming, 10-year Treasury yields are unlikely to get anywhere close to SDOG’s dividend yield.

Other high-dividend ETFs include the SPDR S&P Dividend ETF (SDY B), the iShares Select Dividend ETF (DVY B+), and the iShares Core High Dividend ETF (HDV A-).

For more news, information, and strategy, visit the ETF Building Blocks Channel.

Loading Articles...
Help & Info
  • Contact Us
  • Mission Statement
  • Press
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © ETF Flows LLC
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

Equity ETF Channel

Retirement Portfolio Redux: Is the 60%-40% Portfolio Dead?

Debbie CarlsonOct 22, 2020
2020-10-22

With the 10-year U.S. Treasury yield hovering below 1% and Federal Reserve Chairman Jerome Powell...

Equity ETF Channel

Portfolio Diversification Isn't Dead, It Was Just Sleeping

Debbie CarlsonOct 15, 2020
2020-10-15

Investors could be forgiven to think there was no reason to invest outside of the U.S. for the...

}
X