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The “Dogs of the Dow” is an investment strategy, often employed at the end of a year in anticipation of some potential “mean reversion” that identifies underperforming stocks with high yields. As the name implies, it looks for these within the Dow Jones Industrial Average . The strategy then holds those securities for a year before rebalancing. The logic is that investors can be irrationally exuberant or irrationally pessimistic. While momentum can be powerful, it can also make sense to comb through stocks that have fallen out of favor for opportunities to invest in solid businesses at a discount. As an investment methodology, it needn’t be restricted to the Dow. Dickens wrote: “It was the best of times, it was the worst of times,” when comparing Paris to London during the French Revolution. When it comes to commodities, there can also be stark dichotomies. For example, happily for consumers, crude oil prices have fallen considerably this year. WTI, which traded over $70/bbl in mid-January, settled at $56.38/bbl on Wednesday. What has helped consumers, has proved a headwind for many oil and gas investors. The Energy Select Sector Index has returned roughly 7% year to date, considerably less than the S & P 500 , up more than 15% year to date, and just over a third of the returns of the technology sector . Some of the companies in the sector have become remarkably cheap. Consider Coterra Energy , formed through the 2021 merger of Cabot Oil & Gas and Cimarex Energy. Houston-based E & P Coterra operates in the Permian Basin, Marcellus shale and Anadarko Basin. Coterra exceeded production guidance across oil, natural gas and natural gas liquids when they reported earnings in November, with total equivalent production near the high end of prior estimates, prompting the company to raise full-year 2025 guidance. However, a more important strength is the quality of the company’s assets. The company’s $41/bbl breakeven is below average among 15 peers, whose break-evens range from $39/bbl to $50/bbl. (Source: Coterra Investor Relations QER November earnings presentation/Enverus Intelligence North American Inventory Analysis). The company is expected to generate nearly $2.4 billion in free cash flow in FY 2026, 6% revenue growth, 14.5% adjusted EPS growth, has a dividend yield of almost 3.4%, and the existing stock buyback program has over $1 billion remaining, more than 5% of the current market capitalization. Additionally, the company is anticipated to generate a 10% free cash flow yield next year and is trading at ~10x forward earnings estimates. The oil business is admittedly Dickensian – a tale of two cities, boom or bust, but global energy demands continue to increase, and not all of that demand can be satisfied with renewables. Oil and gas remains a critical business, and Coterra is well-positioned in it. As a stock worth owning with a handsome dividend, if you do not already hold a position, consider it. If the current dividend yield is insufficient, one might also sell the 27 strike calls against it – a trade also known as a “buy write” (buying the stock and writing upside calls against it). DISCLOSURES: None. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.