Dogs of the Dow is an investment strategy that targets the ten top-yielding stocks in the Dow Jones Industrial Average (DJIA) for investment each year. Popularized by Michael B. O'Higgins in his 1991 book, Beating the Dow, this simple strategy frequently outperforms the DJIA and seems to outperform the index over longer periods of time.
The strategy is based on the idea that blue-chip companies pay consistent (and increasing) dividends, while their stock prices fluctuate based on market conditions. So, if the dividend yield is higher than usual, the stock price likely is lower