Dec. 29 at 8:58 PM
The Dogs of the Dow delivered a strong performance in 2025, gaining an average of 17.8% through late December and outperforming the broader Dow’s 14.5% rise. High-yield dividend payers led the way, with healthcare names and legacy tech stocks posting gains of roughly 28% to 44%, marking the group’s best equal-weighted year since 2019.
Dividend stocks could continue to shine in 2026 if falling interest rates and lower bond yields push income-focused investors toward equities. As stock prices rose in 2025, some current Dogs are likely to drop off next year due to lower dividend yields, while underperformers such as Nike, UnitedHealth, and Home Depot may enter the group.
Analysts expect a rebound for these potential new Dogs, with consensus price targets implying meaningful upside. Meanwhile, several high-yield names are expected to remain, with telecom and energy stocks standing out for their attractive yields and relatively low valuations.
$DJIA $JNJ $IBM $NKE $HD