The major stock market indices slumped on Monday due to rising fears over the fast-spreading omicron coronavirus variant. Investors should therefore consider the ‘Dogs of the Dow’ investment strategy during this time of market uncertainty. These ‘Dogs of the Dow’ stocks, such as Cisco (CSCO), Amgen (AMGN), International Business Machines (NYSE:IBM), and Dow (DOW), boast stable dividend returns.Following extreme market volatility, the major stock market indexes ended in red on Friday and have continued lower today. Investors were worried about the economic impact of the rapid spreading of the omicron coronavirus variant and related restrictions.
Amid market uncertainty, investors often opt for the ‘Dogs of the Dow’ investing style. This strategy, popularized by Michael B. O’Higgins in 1991, usually picks the top ten highest dividend-yielding stocks from the Dow Jones Industrial Average. According to Barron’s, the ‘Dogs of the Dow’ should perform well next year.
So, it could be wise to add quality ‘Dogs of the Dow’ stocks, Cisco Systems, Inc. (NASDAQ:CSCO), Amgen Inc . (NASDAQ:AMGN), International Business Machines Corporation ( IBM ), and Dow Inc. (DOW) to your portfolio.