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It finally happened: After taunting investors with several near-misses, the Dow Jones Industrial Average closed above 20,000 for the first time late this past month. It has been a good run – since the end of 2013, the Dow has gained 21%, about the same as the much broader S&P 500 Index. So with the Average closing at a record high, all of the 30 member stocks must have produced good returns, right? Not exactly. Many stocks in the Dow have performed exceptionally well: Home Depot shares rose 68%, Microsoft shares gained 76% and UnitedHealth Group surged over 116%. Yet there are several stocks that have been complete “dogs.”
There is a well-known investing theory called “The Dogs of the Dow,” which focuses on the component stocks in the Dow that have the highest dividend yields. We created a different version of the Dogs of the Dow: we selected the seven stocks that have completely missed the rally over the past three years. If these lazy dogs get off the porch, they could have a market-beating run. All seven are solid, well-run companies with healthy balance sheets. Many offer attractive dividend yields. Some offer defensive traits should the stock market or oil prices turn downward. Others have unique company-specific aspects that could bring them back to life.
Get all the details on these timely value stock opoortunities.