If you're looking for a simple and straightforward investment strategy that has a long history of outperforming the market, you might want to consider the so-called "Dogs of the Dow." This strategy, popular among investors seeking stability and dividend income, is very easy to implement.

The principle behind Dogs of the Dow is simple: at the beginning of each calendar year, you select the ten stocks from the Dow Jones Industrial Average (DJIA) that have the highest dividend yield. The dividend yield is calculated as the ratio of the dividend per share to the share price. In other words, you're looking for stocks that pay relatively high dividends compared to their current price. Acquiring these "dogs" at the beginning of the year represents the beginning of your portfolio. You hold them throughout the year and repeat the strategy at the end of the year - picking ten new stocks using the same principle.

The simplicity of Dogs of the Dow hides several important investment principles. You…