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3 Dogs of the Dow to Buy This July

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  Published in Stocks and Investing on Friday, September 12th 2025 at 15:02 GMT by 24/7 Wall St
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Three “Dogs of the Dow” to Watch in July

When the term “Dogs of the Dow” first appeared in the late 1990s, it was a playful nod to the fact that the lowest‑priced components of the Dow Jones Industrial Average (DJIA) often returned superior long‑term performance. The strategy is simple: pick the 30 companies that sit on the bottom of the Dow’s 20‑year price average, buy the ones that have slipped the farthest below that benchmark, and hold them for the long haul. A new article on 247WallStreet – “3 Dogs of the Dow to Buy This July” – revisits this age‑old playbook and recommends a trio of under‑priced, dividend‑heavy stalwarts that should sit on investors’ radar as July rolls in.

The author begins by reminding readers of the core logic: the Dow is a time‑tested collection of blue‑chip names that have survived economic cycles, yet a few of them sometimes get overlooked when the market’s collective attention swings to newer, faster‑growing sectors. When a Dow component’s price dips far below its 20‑year average, it may present a buying opportunity if its fundamentals remain solid. The article argues that a disciplined, value‑oriented approach can generate upside while limiting downside exposure.

Below is a condensed version of the three picks, the reasoning behind each, and what investors might want to keep in mind as they consider adding them to their portfolios.

1. Procter & Gamble Co. (PG)

Why PG?
Procter & Gamble’s stock price has slipped below the 20‑year average, yet the company’s dividend yield sits comfortably above the sector average. The brand‑heavy consumer staple has a proven track record of weathering economic swings, thanks to its diversified portfolio of household and personal‑care products. With a history of steady earnings growth and a robust dividend‑payment policy, PG exemplifies the “steady‑hand” mentality prized by many value investors.

Key Highlights
- Dividend Yield: Roughly 2.8 % – a healthy payout that outpaces the broader DJIA average.
- Historical Performance: PG has consistently delivered dividend hikes in the last decade, a testament to its cash‑flow resilience.
- Current Price: Trading at roughly $155 per share, well below its 20‑year price average of $180.

The article notes that PG’s recent earnings reports have shown a slight uptick in operating margins, partly driven by higher product pricing in the U.S. market. This suggests that the company is maintaining its profit engine even while the macro environment remains uncertain.

2. The Coca‑Cola Company (KO)

Why KO?
Like PG, Coca‑Cola is a stalwart of consumer staples, yet its price has lagged behind its long‑term average. The company’s diversified beverage portfolio—encompassing soft drinks, juices, and bottled water—ensures a stable revenue stream. With a long history of dividend growth and a yield that sits near 3 %, KO presents a classic value profile.

Key Highlights
- Dividend Yield: Approximately 3.0 % – competitive within the consumer‑staples space.
- Historical Dividend Growth: Coca‑Cola has increased its dividend for more than 50 consecutive years, underscoring its commitment to returning capital to shareholders.
- Current Price: At about $55 per share, KO sits roughly 15 % below its 20‑year price average.

The article emphasizes KO’s strong balance sheet, which gives it the flexibility to invest in growth initiatives (like plant‑based beverage launches) while still paying dividends. KO’s robust cash‑flow generation also positions it well to weather potential rate hikes in the near term.

3. Johnson & Johnson (JNJ)

Why JNJ?
Johnson & Johnson is a diversified health‑care conglomerate, spanning pharmaceuticals, medical devices, and consumer products. While the stock has dipped below its 20‑year average, the company’s diversified revenue streams and consistent dividend history make it a compelling candidate for a value‑focused approach.

Key Highlights
- Dividend Yield: Roughly 2.5 % – in line with the Dow average but bolstered by a strong payment record.
- Dividend Growth: JNJ has raised its dividend for 41 straight years, a rare feat among large‑cap names.
- Current Price: Around $165 per share, below its 20‑year average of $185.

JNJ’s recent earnings release showcased a modest lift in net income, largely due to stronger performance in its consumer products division. The article also points out the company’s sizable cash reserves, which allow it to fund research and development while still delivering shareholder value.

The Bigger Picture

The “Dogs of the Dow” strategy is not a get‑rich‑quick scheme. Rather, it’s a disciplined, long‑term approach that capitalizes on the market’s tendency to overreact. When a company’s price falls sharply relative to its long‑term trend, it can often be an efficient entry point. The article stresses that each of the three picks—PG, KO, and JNJ—shares a common denominator: they are well‑established, dividend‑paying, and have weathered multiple economic cycles.

The author also offers a reminder that the value strategy thrives in a market environment where risk‑aversion is high, and investors are willing to hold onto defensive stocks. As July approaches, the article advises readers to keep a close eye on macro‑economic indicators—especially interest‑rate policy and inflation readings—because they can influence dividend‑heavy, low‑beta names. Nevertheless, the underlying fundamentals of PG, KO, and JNJ remain robust, making them attractive for investors seeking a combination of income and upside potential.

How to Position Yourself

If you’re considering adding one or more of these stocks to your portfolio, here are a few steps the article suggests:

1. Assess Your Risk Tolerance: These companies have historically shown resilience, but the market can still be volatile in the short term.
2. Review Your Asset Allocation: Ensure that your overall portfolio remains diversified, with exposure to growth, value, and income strategies.
3. Keep an Eye on Dividend Triggers: All three names are scheduled to pay dividends in the coming months. Knowing the exact payout dates can help you time your purchases to capture the dividend.
4. Monitor Earnings Announcements: Q3 earnings can offer a glimpse into how each company is handling supply‑chain constraints and cost inflation.
5. Stay Informed About Sector Trends: Consumer staples and health‑care are often considered safe havens, but they can still be sensitive to regulatory and pricing pressures.

Bottom Line

The article on 247WallStreet presents a concise, actionable snapshot of the three most compelling “Dogs of the Dow” for July: Procter & Gamble, Coca‑Cola, and Johnson & Johnson. By focusing on well‑diversified, dividend‑rich blue‑chips that have slipped below their long‑term averages, the author reinforces the timeless appeal of the value‑oriented Dow strategy. For investors who appreciate steady cash‑flow, proven resilience, and a clear dividend track record, PG, KO, and JNJ represent sound entry points that align with a long‑term growth‑plus‑income mindset.

Whether you’re a seasoned portfolio manager or a DIY investor, the June 30 article offers a straightforward guide to a classic pick‑and‑hold strategy that has historically outperformed the market when executed with discipline and patience.