The 8 'Dogs Of The Dow' For 2019 Include Replacements Cisco Systems And JPMorgan

(AP Photo/Richard Drew)

The eight “Dogs of the Dow” for 2018 outperformed the Dow Jones Industrial Average in 2018. After an aggregate year-to-date gain of 8.3% through November, the downside volatility in December took a bite out of performance, but the dogs eked out a gain of 1% for 2018. This outperformed the Dow 30, which lost 5.6% in 2018.

Merck (MRK) was a 2018 dog but does not qualify to be in the “Dogs of the Dow” for 2019. Merck was the best performing Dow component in 2018 with a gain of 35.8% but its dividend yield ended the year at 2.91%, which disqualifies the stock as my guideline is a dividend yield above 3.00%.

Procter & Gamble (PG) was a 2018 dog but does not qualify as its dividend yield of 3.19% ranks ninth. My dogs are limited to eight and Procter & Gamble ended 2018 in bull market territory, 30% above its 2018 low of $70.73 set on May 2.

The Scorecard for The Eight ‘Dogs of The Dow’ For 2019

The Dogs Of The Dow For 2019 Global Market Consultants

Cisco Systems (CSCO) ended 2018 with a dividend yield of 3.32%, ranked seventh. The weekly chart for Cisco is negative with the stock below its five-week modified moving average of $44.47 but well above its 200-week simple moving average or “reversion to the mean” at $33.79. The 12x3x3 weekly slow stochastic reading is projected to end this week at 32.92, down from 39.11 on December 28.

Buy weakness to my semiannual and annual value levels of $41.70 and $39.84, respectively, and reduce holdings on strength to my monthly and quarterly risky levels at $45.65 and $49.39, respectively.

Chevron (CVX) ended 2018 with a dividend yield of 4.27%, much cheaper than 3.45% one year ago, ranked fourth. The weekly chart for Chevron is negative with the stock below its five-week MMA at $112.60 but above its 200-week SMA or reversion to the mean at $106.93. The 12x3x3 weekly slow stochastic reading is projected to end the week at 31.06, down from 32.46 on December 28.

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Alpha Stockman 2 months ago Member's comment

Some really good picks here.