2 Strong Buy Technology Dogs of the Dow, Up 15% and 33%, Are Crushing the S&P 500

By Lee Jackson Published Jun 27, 7:20AM EDT

Quick Read

While the Dow Jones industrials are trailing the S&P 500 and the Nasdaq, the Dogs of the Dow are barking.
Two top Dogs are crushing both indices and are up 15% and 33% respectively.
With the stock market closing back in on all-time highs, it makes sense to be careful now.

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2 Strong Buy Technology Dogs of the Dow, Up 15% and 33%, Are Crushing the S&P 500 — © jonathandavidsteele / Getty Images

The Dogs of the Dow is a well-known strategy first published in 1991 by Michael Higgins. The plan aims to maximize investment yields by purchasing the 10 highest-yielding dividend stocks from the Dow Jones Industrial Average each year. The highest-yielding stocks are also the lowest-priced stocks in the venerable index. That is because the lower a stock (or bond) goes in price, the higher the attached yield or coupon becomes. This year, some of the top Dogs have survived the brutal selling and volatility much better than most and still offer outstanding entry points.

After a massive rally off the lows posted in early April, all the major indices have roared back from big double-digit losses and are all positive, and looking to close in on the all-time highs posted back in February. While the Dow Jones industrials are trailing the tech-heavy Nasdaq and the S&P 500, the two technology stocks that made the Dogs of the Dow in 2025 are having an incredible year and crushing the broader markets.

Why do we cover the Dogs of the Dow?

Since the turn of the century, the Dogs of the Dow have significantly outperformed the overall Dow Jones industrials and the Small Dogs of the Dow, which are the five highest-yielding stocks, even more. The fact that investors are buying the highest-yielding companies in the venerable index improves the chances for total return gains.

Cisco

This legacy technology giant develops, manufactures, and sells networking hardware, software, telecommunications equipment, and other high-tech services and products. Cisco Systems Inc. (NASDAQ: CSCO | CSCO Price Prediction) stock is close to reaching a 52-week high and offers a solid dividend. The company designs, manufactures, and sells internet protocol-based networking and other products related to the communications and information technology industry:

Enterprise routing portfolio interconnects public and private wireline and mobile networks, delivering highly secure and reliable connectivity to campus, data center, and branch networks.
Wireless products include wireless access points and controllers.
Compute portfolio including the Cisco unified computing system, HyperFlex, and software management capabilities, which combine computing, networking, and storage infrastructure management and virtualization.

In addition, it provides internet for future products consisting of:

Routed optical networking
5G
Silicon and optics solutions
Collaboration products, such as meetings, collaboration devices, calling, contact centers, and communication platforms as a service
End-to-end security product consists of network security, cloud security, security endpoints, unified threat management, and zero trust
Optimized application experience products, including full-stack observability and network assurance

Further, the company offers a range of service and support options for its customers, including technical support, advanced services, and advisory services. It serves businesses of various sizes, public institutions, governments, and service providers.

Wells Fargo has an Overweight rating for the stock with a $75 target price.

IBM

International Business Machines Corp. (NYSE: IBM), nicknamed Big Blue, is an American multinational technology company. The legacy blue-chip tech giant offers conservative investors a safer way to play the sector and is up a massive 33% in 2025. IBM provides integrated solutions and services worldwide.

The company operates through four segments:

Software
Consulting
Infrastructure
Financing

The Software segment offers a hybrid cloud and AI platform that enables clients to realize their digital and AI transformations across their applications, data, and environments. IBM has partnered with Amazon Web Services. This will allow AWS users to access Watson X AI features and its data platform. IBM also partnered with Palo Alto Networks, allowing the cybersecurity company to acquire IBM’s QRadar Software as a Service (SaaS) assets.

The Consulting segment focuses on integrating skills across strategy, experience, technology, and operations by domain and industry.

The Infrastructure segment provides on-premises and cloud-based server and storage solutions and life-cycle services for hybrid cloud infrastructure deployment.

The Financing segment offers client and commercial financing that facilitates IBM clients’ acquisition of hardware, software, and services.

The company has a strategic partnership with various companies, including:

Hyperscalers
Service providers
Global system integrators
Software and hardware vendors such as Adobe, Amazon Web Services, Microsoft, Oracle, Salesforce, Samsung Electronics, and SAP

Wedbush has an Outperform rating with a Wall Street-high $325 price objective.

Boomers Are Buying 4 Technology Stocks Yielding Up to 4.6% for Growth & Income

About the Author Lee Jackson →

Lee Jackson has covered Wall Street analysts' equity and debt research and equity strategy daily for 24/7 Wall St. since 2012. His broad and diverse career, which included a stint as the creative services director at the NBC affiliate in Austin, Texas, gives him unique insight into the financial industry and world.

Lee Jackson's journey in the financial industry spans over 30 years, with nearly two decades as an institutional equity salesperson at Bear Stearns, Lehman Brothers, and Morgan Stanley. His career was marked by his presence on the sell side during pivotal Wall Street events, from the dot.com rise and bubble to the Long Term Capital Management debacle, 9/11, and the Great Recession of 2008. This is a testament to his resilience and adaptability in the face of market volatility.

Lee Jackson’s practical financial industry experience, acquired from a career at some of the biggest banks and brokerage firms, is complemented by a lifetime of writing on various platforms. This unique combination allows him to shed light on the intricacies and workings of Wall Street in a way that only someone with deep insider experience and knowledge can. Moreover, his extensive network across Wall Street continues to provide direct access for him and 24/7 Wall St., a privilege few firms enjoy.

Since 2012, Jackson’s work for 24/7 Wall St. has been featured in Barron’s, Yahoo Finance, MarketWatch, Business Insider, TradingView, Real Money, The Street, Seeking Alpha, Benzinga, and other media outlets. He attended the prestigious Cranbrook Schools in Bloomfield Hills, Michigan, and has a degree in broadcasting from the Specs Howard School of Media Arts.