Dogs of the dow 2023: Time to Unleash the Dogs of the Dow in 2023? Duncan Financial Group
The company expects the net selling price to continue to decline as the product faces competition. Total loans ended the period at $1.14 trillion, up from $1.11 trillion at the end of September. Total deposits were $2.34 trillion, down from $2.41 trillion in the prior quarter. We see the loan-to-deposit ratio near 49% as a sign of management’s caution in the next few quarters. Also, on February 15th, 2023, Cisco reported earnings results for the second quarter of the fiscal year 2023. It also encourages investors to reap the tax benefits from holding positions for at least one year before selling, thereby being taxed at the long-term capital gains tax rate instead of the short-term rate.
Prolia, which treats osteoporosis and should become the top-grossing product sometime this year, grew 14% due to 11% volume growth and higher average prices. Osteoporosis diagnoses in the U.S. are now nearly back to pre-COVID-19 levels, a slight sequential improvement. Cisco Systems is the global leader in high-performance computer networking systems.
Best Travel Insurance Companies
The decline in sales was due to lower revenue in all operating segments, as the company noted slower economic activity globally and destocking customer behavior. On January 27th, 2023, Chevron reported financial results for the fourth quarter and full year. On February 15th, 2023, Cisco announced a 2.6% dividend increase in the quarterly payment to $0.39 per share.
Rebalance the portfolio to ensure the 10 stocks have equal weights. The Dow Dogs of the Dow strategy is an investment approach which involves buying an equal dollar amount in the 10 highest-yielding Dow stocks at the start of each year and holding them for a year. At the end of the year, the process is to be repeated by selling the previous year’s picks and buying the new highest yielding stocks . On January 31st, 2023, Amgen announced fourth-quarter and full-year results. Revenue declined 0.6% to $6.8 billion for the quarter, though this topped estimates by $30 million. Adjusted earnings-per-share of $4.09 compared unfavorably to $4.40 in the prior year but was in line with estimates.
3M provided an outlook for 2023, with the company expecting adjusted earnings-per-share of $8.50 to $9.00. On a comparable basis, adjusted earnings-per-share for 2022 was $9.88. We project that IBM will see earnings-per-share grow 4.1% to $9.50 in 2023.
The company’s routers and switches allow networks worldwide to connect to each other through the internet. Cisco also offers data center, cloud, and security products. But just like that, in a disastrous 2022, the Dogs stood up when just about everything—including the industrial average itself—fell down.
Dow noted that it would lay off about 2,000 employees globally as it aims to reduce costs by $1 billion in 2023. Due to the dour outlook, we project just $3.15 of earnings-per-share this year. Product revenue increased 4% on higher volume for key products. On December 12th, 2022, Amgen announced a 9.8% quarterly dividend increase to $2.13.
Company-wide revenue of $16,690M was flat from the prior year, while diluted adjusted earnings per share rose 7% to $3.60 from $3.35 year-over-year. Diluted GAAP earnings per share increased 15% to $3.13 in the quarter from $2.72 in the prior year. The strategy consists of investing in the 10 highest-yielding stocks in the Dow Jones Industrial Average, an index of 30 large cap U.S. stocks.
Dogs of the Dow #4: Walgreens Boots Alliance
As growth spending moderates from here, recession-resistant Verizon will retain more cash flow to pay down debt and support its well-covered dividend. Verizon’s dividend yield shot higher in 2022, ending the year at 6.6% to sit well above its 5-year average yield of about 4.5%. Financial Planning Services offered through Duncan Financial Planning Advisors a registered investment advisor. Each company is independently responsible for the products and services they provide. Representatives of Cambridge Investment Research, Inc. do not provide tax or legal advice in their roles as registered representatives. Cambridge and Duncan Financial Group and its affiliates are separate entities.
Of these ten Dow stocks, the five stocks with the lowest closing price are the 2023 Small Dogs of the Dow. For all steps required to invest in the 2023 Dogs of the Dow, get the free Dogs of the Dow Checklist. Thousands of dividend investors trust our online tools and research to track their portfolios, avoid dividend cuts, and achieve lasting financial freedom. The best recession-proof stocks can withstand high inflation and rising interest rates that threaten to push the economy into a downturn in 2023.
Broadband had 416K net additions during the quarter, which included 379 fixed wireless net additions. Cisco offered a revised outlook for the fiscal year 2023 as well, with the company now expecting revenue growth of 9% to 10.5%, compared to 4.5% to 6.5% and 4% to 6% previously. Adjusted earnings-per-share is now expected in a range of $3.73 to $3.49, compared to $3.51 to $3.58 and $3.49 to $3.56 previously. At the midpoint, this would be an 11.9% improvement from the prior year. Earnings-per-share totaled $3.32, but this was well off consensus estimates of $5.97 and below last year’s total of $10.81. Full-year earnings-per-share declined almost 50% to $30.06.
Dogs of the Dow #5: 3M
As a result, the oil major grew its adjusted earnings-per-share by 60%, from $2.56 to $4.09, though this was $0.20 below estimates. The company’s adjusted earnings-per-share for the quarter blew away expectations, coming in at $3.56, which was 46 cents ahead of estimates. Revenue surged 18% year-over-year to $34.5 billion, which was $270 million more than expected. JPMorgan Chase reported fourth quarter and full-year earnings results on January 13th, 2023, and results were better than expected. Adjusted earnings-per-share of $0.88 compared to $0.84 in the prior year.
Additionally, half of last year’s Dogs, including International Business Machines , Chevron , Merck , Amgen , and Coca-Cola posted gains in 2022. Yet the oil major still ranks among the top 10 highest-yield stocks in the Dow Jones Industrial Average. This is because so many Dow stocks are growth-oriented companies with lower dividend yields. By region, the Americas grew 9%, Europe/Middle East/Africa increased by 5%, and Asia-Pacific/Japan/China was up by 1%. Cisco repurchased 26 million shares at an average price of $47.72 during the quarter. The company remaining share repurchase authorization is $13.4 billion, or 6.5% of the current market cap.
In fact, in 2022 the Dow Dogs of the Dow outperformed the Dow Jones Industrial Index, returning +2.2% versus a -8.8% for the DJIA. This strong performance can be attributed to DJIA components like IBM, Chevron, Merck, Amgen and Coca-Cola, which all posted gains last year. Chevron, for example, jumped a staggering 53% in addition to yielding 4.6%. Stock markets in the U.S. and around the globe turned in a rotten 2022, with fears of inflation, rising rates, and supply chain issues swirling around the economy and markets all year. Verizon provided guidance for 2023 as well, with the company expecting adjusted earnings-per-share of $4.55 to $4.85 for the year. At the midpoint, this would be a 7% decrease from the prior year.
Here are the 10 stocks the strategy is picking for 2023. But in reality, the limited number of holdings in the Dow Jones Industrial Average benchmark makes the top 10 yield list less targeted. Similar ETFs are available for emerging markets, international developed markets, and REITs. The firm’s core products – switches and routers – connect computing devices to networks and computer networks with each other.
Dog of the Dow #4: International Business Machines (IBM)
Regardless of whether the Dogs of the Dow outperform the stock market in 2023, many will find that the simple strategy gives them an easy way to get market exposure without a lot of hassle. With this perspective, Dow’s current dividend yield is not that impressive even though it ranks the company second on the 2023 Dogs of the Dow list. Opportunistic investors may prefer to buy Dow after sentiment on the economy has soured more.
The company’s profits are also sensitive to oil and gas prices and supply-demand balances across different products. The Dogs of the Dow strategy consists of buying equal-weighted amounts of the 10 highest-yielding stocks in the Dow Jones Industrial Average benchmark at the start of the year. While it may not outperform the broader market every year, it is virtually guaranteed to provide investors with a combination of attractive current yield with steadily rising income over time. The company had postpaid phone net additions of 217K during the quarter, much better than the 8,000 net additions in the third quarter. Revenue for the Consumer segment grew 4.2% to $26.8 billion, driven by strength in equipment sales and a 5.9% increase in wireless revenue growth.
The “Dogs of the Dow” strategy produces above-average income and concentrates on stocks that typically trade at lower valuations relative to the rest of the DJIA. Given that the DJIA represents some of the largest companies in the world, its “dogs” are typically companies with strong track records that have hit temporary problems. There’s a lot of uncertainty about how 2023 will go for stock investors. Fears of a recession have many investors gravitating toward value and dividend stocks once again. Shares suffered when a combination of rising interest rates and the tough market environment for investment banking dealt the financial giant a double whammy. JPMorgan Chase , the largest bank in America, traces its roots back to 1799.
