AT&T Inc. (T), Verizon Communications Inc. (VZ): Are the Dogs of the Dow (.DJI) Still in the Race?

How will the year end?
Last year, the Dogs had a total return of about 5.7% compared to 7.3% for the Dow. Here’s a comparison for the previous five years: 

Source. DogsoftheDow.com. 

This year’s Dogs should at least match 2011’s performance — assuming nothing happens to implode Hewlett-Packard before the end of the year.

While the Dogs strategy doesn’t require any upkeep, investors still need to pay attention to the overall investing climate, or a hard year might sneak up on the Dogs, such as 2008’s recession reaction.

Foolish final thoughts
It’s important to do your research before trying a new investment strategy — even if that strategy boils down to “buy and hold for a year.” The Dogs of the Dow has its limits, but investors may find the benefits worth that risk. And the current Dogs should continue their streak of outperforming the Dow. 

The article Are the Dogs of the Dow Still in the Race? originally appeared on Fool.com.

Brandy Betz has no position in any stocks mentioned. The Motley Fool recommends Johnson & Johnson. The Motley Fool owns shares of Johnson & Johnson. 

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