Editor's note: As part of our partnership with PBS's Nightly Business Report, TheStreet's David Peltier appeared on NBR to share his favorite "Dogs of the Dow" stocks for 2011. (Watch video and read transcript.)
NEW YORK (TheStreet) -- Companies are carrying record levels of cash into the new year, and I expect that dividends will continue to increase in 2011. This would continue a trend from the previous year, where Standard & Poor's calculated that dividend increases were up 46% through the first three quarters of 2010.One way for investors to track the performance of dividend stocks is the "Dogs of the Dow" index, which is a strategy that focuses on the 10 highest-yielding stocks in the Dow Jones Industrial Average at the beginning of the year. This approach doesn't always generate a higher return than the overall Dow 30, however; and in fact it failed to do so in five of the six years between 2004 and 2009. But in 2010, buying the Dogs of the Dow worked like a charm.