There are some dark horses in the exchange market that investors have left behind. They are called the Dogs of the Dow. These are shares of 10 companies with the highest income. However, there is a chance they will be ahead of the market and make notable profit. The term was introduced by John Slatter from Wall Street. The list of the Dogs of the Dow includes companies from Dow Jones Industrial Average. High share dividend yield of such corporations indicates that they are undervalued in the market. Experts pay attention to three potential financial favourites of 2020.

Dow Inc.

Next year will be a time of great opportunity for Dow Inc., a giant in the production of plastics and organosilicon polymers. Analysts expect high yield on company’s shares. The chemical producer is ready to pay huge dividends to its shareholders. Dow Inc. intends to give 65% of its profit to payments. Nowadays, the company pays $0.7 dividends per share. Its annual yield is around 5.27%. According to analysts, shares of Dow Inc. have increased by 7% since the beginning of 2019.

Exxon Mobil

The second Dog of the Dow in 2020 can become Exxon Mobil Corp., an American energy giant. The company’s shares grew by only 1% in 2019. The corporation dominates in various directions, from well drilling to shale gas production in the US. Exxon Mobil has great potential. The international oil and gas manufacturer invests billions of dollars into its development compared to the majority of large producers. Exxon Mobil executives pay $0.87 dividends per share. The company’s yield reaches 5%.

International Business Machines

International Business Machines, a technology company, is considered to be the third candidate in this list. Currently, the tech giant has faced challenges. However, it is successfully overcoming difficulties on its way. Moreover, IBM executives prefer stability over dominance in the digital economy. In 2019, shares of IBM were 38% below the record high of 2013. The company's quarterly payments are $1.62 per share and the yield is around 4.8%.