The Dogs of the Dow is a popular investing strategy, where you simply invest in the Dow Jones Industrial Average (DJINDICES: ^DJI) components least favored by the Street in a given year.

The idea is simple. You start with a heavily vetted list of elite American companies, narrow it down to the names under heavy market fire, and invest in the concept that these titans of industry surely will recover from whatever brought them to this shortlist in the first place. Sit down with a list of Dow stocks at the start of the year, identify the ten components with the highest dividend yields, and invest equal dollar amounts across these ten stocks.

Due to the math involved in calculating dividend yields, a lofty value often indicates weak stock price performance -- coupled with a willingness to share cash profits with shareholders through dividend payouts.

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Source Fool.com