There are three main variations of Dow Investing. The first, known as the High Yield 10 or the Dogs of the Dow, is simply to buy equal dollar amounts of the ten Dow stocks with the highest yield and hold them for one year (In the case of a tie for 10th place, pick the stock with the lower price per share.).
After the year is up, find the 10 stocks with the highest yield, sell any of your stocks not still on the top ten list, and replace them with the new highest yielders.
This isn't something we came up with, by the way. It's been around for years. It's called the Dogs of the Dow because the high yielding stocks are the ones with prices that are low relative to the dividend paid, indicating stocks that are out of favor. You can think of them as the Investor's Best Friend.
For the last 25 years, this canine approach has compounded at an annual rate of 18.0%, beating the market (15.0%) and most professional money managers soundly. What does that mean in terms of dollars? Well, a $10,000 portfolio would have increased to just over $625,000 over those 25 years while an index fund would have grown to around $330,000 over the same time period.