Abstract
Investors have always yearned for ways to beat the market. In recent years, one popular strategy among American investors involves a portfolio comprising of the ten highest yielding stocks selected from among the 30 stocks in the Dow Jones Industrial Average (DJIA), one of the most popular stock indices of the US. Such ft portfolio based on the Dow Dividend Strategy (DDS) came to be known as the ‘Dogs of the Dow.’ Portfolio of ‘Dogs of the Dow’ has been found to outperform the Dow on numerous occasions. This paper studies the effectiveness of such a strategy in the Indian context by applying the same strategy to similar stocks in the 30- stock Sensitive Index (Sensex) of Stock Exchange, Mumbai (BSE) and evaluates the performance of ‘Dogs of the Sensex’ portfolio during the late 90s.