Dogs of the Dow is a dividend-paying investment strategy that invests in the top ten dividend-paying stocks on the Dow Jones Industrial Average. Even though it does not outperform the Dow and the S& P 500 every year, the approach has an excellent long-term track record. Small Dogs is an extension of the Dogs method, which involves investing in the five Dogs with the lowest stock prices. The strategy is designed to provide investors with the highest dividend yield possible by selecting companies with high dividend yields. Implementing the strategy is simple and does not require any assumptions. Therefore, an investor can easily boost Dogs' results with this investment method.

The “Dogs of the Dow” is an investment strategy that focuses on selecting the ten highest dividend-yielding stocks from the Dow Jones Industrial Average at the start of each year. The idea is that these stocks are temporarily undervalued and may offer strong potential for price recovery along with reliable dividend income. Investors buy equal amounts of these ten stocks and hold them for a year before rebalancing the portfolio. This method aims to combine value investing with income generation, appealing to long-term investors seeking stable returns. While simple to follow, the strategy still carries market risks and may underperform during periods when high-yield stocks lag behind growth-oriented companies or broader market trends.