economy

December 31, 2025

The ‘Dogs of the Dow’ strategy worked pretty well in 2025. Here are the stocks to target next year

Investor Kevin Simpson has his eyes set on five stocks that could outperform next year in the 'Dogs of the Dow' strategy, including newcomer Verizon.

The ‘Dogs of the Dow’ strategy worked pretty well in 2025. Here are the stocks to target next year

TL;DR

  • Kevin Simpson, founder and CIO at Capital Wealth Planning, focuses on five 'Dogs of the Dow' stocks for income investors.
  • The 'Dogs of the Dow' strategy involves stocks with the highest dividend yields in the Dow Jones Industrial Average.
  • This strategy gained 17% in 2025, outperforming the Dow's 13.7% gain.
  • Simpson is bullish on healthcare stocks Amgen, Merck, and Johnson & Johnson for 2026.
  • Verizon is highlighted for its high dividend yield (almost 7%) and forward multiple.
  • IBM, Cisco, and McDonald's are expected to exit the 'Dogs' strategy, replaced by Nike, UnitedHealth, and Home Depot.
  • Home Depot is identified as a top idea for 2026, potentially benefiting from normalizing interest rates.

Continue reading the original article