What Were Some High-Yielding Dow Stocks in 2014?


Quick Answer

Some of the Dow stocks with the highest yields in 2014 were those of AT&T (T), Verizon (VZ), Merck (MRK), Intel (INTC), Pfizer (PFE), and McDonald's (MCD), according to Fool.com. The yield of these stocks was 5.23 percent, 4.31 percent, 3.52 percent, 3.47 percent, 3.40 percent, and 3.34 percent, respectively.

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Full Answer

Many investors utilize the highest yielding Dow stocks in accordance with the "Dogs of the Dow" strategy in order to beat the market. The strategy, as stated on Fool.com, involves buying and holding equal dollar amounts of the 10 highest-yielding dividend stocks of the Dow Jones Industrial Average. The strategy banks on the idea that blue-chip stocks with high yields are at or near the bottom of their business cycles and are likely to do much better going forward, which generates lots of growth for the investor. Those employing the strategy gain large dividends in addition to experiencing gains in the stocks underlying those dividends.

Although high-yield portfolios are often dismissed as inferior to the growth of their counterparts, investors who use the Dogs of the Dow strategy consistently outperform more low-yielding portfolios, according to Fool.com. The Dogs of the Dow strategy beat the Dow Jones Industrial Average by 6.8 percent in 2011, and after slightly under-performing by 0.2 percent in 2012, it exceeded the DOW again by 8.37 percent in 2013.

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