Dogs of the ASX 2025


The Dogs of the Dow strategy selects the ten highest-yielding Dow stocks annually, investing equally in each. The approach targets undervalued blue-chip stocks, seeking both dividend income and potential price recovery.

Investors divide funds equally among these stocks, holding them for a year to capture both dividend income and possible price recovery. The premise is that high-yielding stocks are often temporarily undervalued, offering potential for both income and price gains.

The Dogs of the ASX adapts this strategy for Australian markets. It uses the same rationale, where investors select the ten worst-performing dividend-paying stocks from the ASX 200 over the past year

​Over the past 12 months, the companies identified as the “Dogs of the ASX” have experienced notable declines in their share prices due to various challenges:

Why have they had price declines in the last 12 months?

  Fortescue Metals Group Ltd (FMG.ASX)

  • Reason for Decline: A significant drop in first-half profit, attributed to weakened iron ore demand from China’s struggling property sector and high inventories.

 Mineral Resources Limited (MIN.ASX)

  • Reason for Decline: Mineral Resources faced a series of challenges, including a significant net loss in the first half of the fiscal year, operational disruptions, and governance issues involving its managing director, Chris Ellison, related to tax evasion and misuse of company resources.

 Pilbara Minerals Limited (PLS.ASX)

  • Reason for Decline: Pressure due to a downturn in lithium prices, impacting revenue and profitability. Additionally, increased short-selling activity has contributed to the stock’s volatility.

 IGO Limited (IGO.ASX) 

  • Reason for Decline: Challenges in its lithium operations, including a significant impairment on the Bald Hill lithium mine and foreign exchange losses, led to a substantial net loss in the first half of the fiscal year. ​

 Iluka Resources Limited (ILU.ASX):

  • Reason for Decline: There was a Funding dispute with the Australian government over its rare earths refinery project, leading to project delays and increased costs.

Paladin Energy Ltd (PDN.ASX):

  • Reason for Decline: Amid doubts over its $1.5 billion acquisition of Fission Uranium and a significant reduction in the production guidance for its Langer Heinrich mine in Namibia.

  Viva Energy Group Limited (VEA.ASX):

  • Reason for Decline: Lower refining margins and increased debt levels following recent acquisitions, leading to concerns about the company’s financial health.​


 Ramsay Health Care Limited (RHC.ASX):

  • Reason for Decline: Rising labor costs and challenging negotiations with private health insurers, impacting profitability.​


 NIB Holdings Limited (NHF.ASX):

  • Reason for Decline: A faster-than-expected decline in margins, leading to a decrease in share price.​

 IDP Education Limited (IEL.ASX):

  • Reason for Decline: Tighter regulations and increased competition in the international student placement market.


These factors have contributed to the underperformance of these companies over the past year, leading to their classification as the “Dogs of the ASX.”

The Bottom Line

The Dogs of the Dow strategy is an interesting way to invest because it focuses on high-yielding blue-chip stocks that are temporarily undervalued, offering potential for both income and capital appreciation. Here’s why it appeals to investors:

1. Focuses on Reliable, Large-Cap Companies
2. Contrarian Approach—Buying Low
3. Strong Dividend Income
4. Historically Solid Performance
5. Simple and Easy to Follow

Potential Drawbacks

  • Some stocks may be value traps—high dividend yields might signal real financial trouble rather than a temporary setback.
  • The strategy is narrowly focused on just 10 stocks, which may lead to lack of diversification.
  • It tends to underperform in high-growth bull markets, as it favors defensive, dividend-paying companies.

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