The “Dogs of the Dow” strategy has staged a comeback, and Kevin Simpson of Capital Wealth Planning believes 2026 could be another strong year.
After a 17% gain in 2025, beating the broader Dow’s performance, Simpson is zeroing in on three names he sees as essential for income-focused investors: Amgen, Verizon, and Home Depot.
Each offers a different angle: from healthcare resilience to high-yield dividend and cyclical recovery potential.
Together, these three names represent the kind of balance that dividend investors crave heading into a year where stability and cash flow will matter more than chasing growth.
Amgen stock: healthcare strength with steady dividends
Amgen stock has emerged as one of Simpson’s top picks within the “Dogs of the Dow” for 2026.
The biotech giant – known for its portfolio of treatments in oncology and immunology – offers investors both defensive qualities and reliable income.
Simpson noted that the healthcare trade “really started to come to life at the end of 2025,” and Amgen is positioned to benefit from that momentum.
With a solid dividend yield of 3.08% and a track record of consistent payouts, the Nasdaq-listed firm provides a cushion against market volatility.
For investors seeking exposure to healthcare innovation while still prioritizing income, AMGN stands out as a blend of growth potential and stability.
Verizon stock: a high-yield anchor for income investors
For those prioritizing yield above all else, Simpson points to Verizon stock as a perennial favorite.
“If you’re a dividend player, VZ always seems to top that list,” he said, highlighting the company’s nearly 7% yield at the time of writing.
While Verizon’s growth prospects are modest, its slow-moving stock price actually translates into dependable cash returns.
The telecom giant’s forward multiple of 8.5 underscores its value orientation, making it attractive for investors who want predictable income rather than rapid appreciation.
In a market where volatility can erode confidence, VZ shares’ steady payouts act as a stabilizing force. For equity income portfolios, it remains one of the most reliable “Dogs of the Dow” in 2026.
Home Depot stock: significant cyclical rebound potential
Among the newcomers to the Dogs lineup, Home Depot stock is Simpson’s standout idea for 2026.
It has struggled in 2025, falling 11%, but the market veteran believes that if interest rates begin to normalize, the home improvement retailer could stage a significant rebound.
With its strong brand and dominant market position, HD shares are well-positioned to benefit from a cyclical upswing in housing and consumer spending.
Simpson underscored its potential, noting that normalization in borrowing costs could reignite demand for home renovation projects.
For investors willing to look past short-term weakness, Home Depot offers both dividend appeal (2.66% yield) and upside tied to broader economic recovery.
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