Why "Dogs" Might Actually Bite Back in 2022

Hear us out: the “Dogs of the Dow” strategy isn’t as dumb as it sounds. Here’s the play—take the 10 highest-dividend-yielding stocks in the Dow, bet they’ll bounce back, rinse and repeat for 30+ years.

The logic? When a stock gets hammered and yields spike, there’s usually money to be made on the rebound. Think beaten-down blue chips like IBM, Verizon, Chevron, Intel, and Coca-Cola.

If picking individual dogs feels risky, there’s SDOG (ALPS Sector Dividend Dogs ETF)—it holds 7 of the 2022 dogs but spreads the bet across a broader index. No single holding exceeds 2.17%, so even if a dog stays a dog, you’re protected.

Here’s the kicker: rising interest rates (Fed’s move in 2022) could actually help dividend payers. As bond yields go up, stocks throwing off steady cash become more attractive.

Alternatives like SDY, DVY, and HDV offer similar exposure if you want options.