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The Dow Jones Industrial Average outperformed the investment strategy the "Dogs of the Dow."

Easing trade tensions, better than expected economic data, and rate cuts by the Federal Reserve all contributed to the Dow Jones Industrial Average (DJIA) outperforming the investment strategy "Dogs of the Dow," according to The Wall Street Journal.

The Dogs of the Dow strategy consists of buying the 10 stocks with the highest dividend yield out of the 30 stocks in the DJIA at the beginning of the year and holding them through the year. At the end of the year, the stocks are evaluated to determine if the original 10 are still the highest yielding.

Since the start of 2019, the DJIA has been up 24 percent if adjusted for dividends. On the contrary, the Dogs were up 13 percent. In the past 10 years, this has also happened in 2012, 2014, and 2017. 2018 would be on that list as well if the market had not sold off at the end of the year.

The investment strategy focuses more on dividends, a somewhat old investment philosophy. “Throughout the tech bubble, the financial crisis, if you maintained the Dogs of the Dow methodically, it would’ve eventually panned out nicely for you,” said Edward Moya, senior market analyst at New York brokerage Oanda.

The Dow Jones Industrial Average outperformed the investment strategy the "Dogs of the Dow."

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