Since the beginning of the year, the major market indexes have faced intense selling pressure due to the Federal Reserve’s aggressive monetary tightening to tame multi-decade high inflation, the war between Ukraine and Russia, supply disruptions arising from the war, and soaring energy and commodity prices. However, the benchmark indexes rebounded last week, with the S&P 500 ending its seven-week losing streak by gaining 6.6% over the past five days, posting its best week since November 2020. Also, the Dow Jones Industrial Average and the Nasdaq Composite have climbed 6.2% and 6.8%, respectively, over the past five days.
Amid uncertain market conditions, investors often opt for the 'Dogs of the Dow' investing strategy. This strategy, popularized by Michael B. O'Higgins in 1991, usually picks the top 10 highest dividend-yielding stocks from the Dow Jones Industrial Average. The 'Dogs of the Dow' investment strategy aims to beat the Dow Jones Industrial Average by adding high-yield dividend stocks.
