NEW YORK (AP) — It's a new year, so once again it's time to take "Dogs of the Dow" out for a run.
This annual Wall Street strategy has investors kick off January by buying the 10 highest-yielding stocks in the Dow Jones industrial average and hold them for rest of the year.
Yield is the annual dividend from a company divided by its stock price. The higher yields of the "Dogs" signal that their stock prices have declined the most among the Dow's 30 blue-chip companies.
The goal of the strategy is to earn more dividend income and hope that the stocks also mount a comeback.
If a company's stock price is $1 and it pays a dividend of 5 cents to shareholders, the yield is 5 percent. Yields are attractive to some investors because companies will rarely cut their dividend payout to shareholders, except under extreme circumstances.
This year's "Dogs" are a lot like the ones from 2013.
In the top spot is AT&T, which has a dividend yield of around 5.2 percent, followed by Verizon Communications, which has a yield of 4.3 percent. Both Verizon and AT&T held the number one and two spots, respectively, going into 2013 last January.
Rounding out the top 10 "Dogs of the Dow" are Merck, Intel, Pfizer, McDonald's, Chevron, General Electric, Cisco and Microsoft. Collectively, 2014's "Dogs" have a dividend yield of around 4 percent.