The high-yield Dow stock strategy

Explain the investment approach known as the Dogs of the Dow.

Buy the ten highest-yielding Dow stocks each year. At the start of each year you rank the 30 Dow components by dividend yield, put equal amounts into the top ten, hold for a year and rebalance. The logic is contrarian: a high yield often means a beaten-down price for a large, stable firm that may rebound, but evidence of persistent outperformance after costs and taxes is mixed.