So how have the high dividend paying Dogs of the Dow and the Small Dogs of the Dow performed? The included chart and tables answer that question. What the data shows is that, over the long-term, the performance of the Dogs of the Dow and the Small Dogs of the Dow has been impressive. For example, since the turn of the century, the Dogs of the Dow had an average annual total return of 9.5%. This compares favorably to the average annual total return of the Dow Jones Industrial Average of 8.4%. The Small Dogs of the Dow have fared even better — gaining an average of 10% per year — notable considering that the time period involved included both the dot-com bust as well as the historic financial crisis.
Of interest, Dogs of the Dow X and Small Dogs of the Dow X have done even better. Since the turn of the century, Dogs of the Dow X has an average annual total return of 10.8% while Small Dogs of the Dow X did even better with an average annual total return of 12.5%. Noticeably better than the Dow Jones Industrial Average at 8.4% and the S&P 500 at 7.7%.
The following table presents the average of annual total returns for one, three, five and 10-year periods ending December 31, 2018. In addition, the right-most column in the table includes total return performance figures so far this millennium (i.e. 12/31/1999 to 12/31/2019).
| Investment | Symbol | 5 Year | 10 Year | Since 2000 |
|---|---|---|---|---|
| Dogs of the Dow | - | 13.4% | 15.9% | 9.5% |
| Small Dogs of the Dow | - | 9.6% | 14.9% | 10.0% |
| Dogs of the Dow X | - | 15.6% | 17.7% | 10.8% |
| Small Dogs of the Dow X | - | 14.3% | 19.7% | 12.5% |
| Dow Jones Industrials | - | 13.3% | 13.9% | 8.4% |
| S&P 500 | - | 12.5% | 14.2% | 7.7% |
| Fidelity Magellan | FMAGX | 12.3% | 13.0% | 7.1% |
| Vanguard Index 500 | VFINX | 12.3% | 14.0% | 7.6% |
The following table presents the total returns for recent calendar years. For an update on this year’s performance, try our YTD performance tables.
| Investment | Symbol | 2015 | 2016 | 2017 | 2018 | 2019 |
|---|---|---|---|---|---|---|
| Dogs of the Dow | - | 2.6% | 20.8% | 23.7% | 0.0% | 19.7% |
| Small Dogs of the Dow | - | 10.3% | 14.3% | 12.8% | 0.8% | 9.7% |
| Dogs of the Dow X | - | 8.1% | 23.9% | 23.8% | 5.1% | 17.3% |
| Small Dogs of the Dow X | - | 14.3% | 13.4% | 20.5% | 14.3% | 9.2% |
| Dow Jones Industrials | - | 0.2% | 16.5% | 28.1% | -3.5% | 25.3% |
| S&P 500 | - | 1.4% | 12.0% | 21.8% | -4.4% | 31.5% |
| Fidelity Magellan | FMAGX | 4.1% | 5.2% | 26.5% | -5.6% | 31.2% |
| Vanguard Index 500 | VFINX | 1.3% | 11.8% | 21.7% | -4.5% | 31.3% |
Note 2: The effects of commissions/loads are not included.
Note 3: All data is believed to be from reliable sources.
Note 4: Past performance is in no way a guarantee of future results.
Note 5: The above listed mutual funds were selected for comparison due to the fact that they are among the largest U.S. domestic growth equity funds.
