The big change this week is that Pfizer (PFE) vaulted to the top of the list after raising their quarterly dividend from .24 to .29, an increase of 21%. PFE is now yielding 4.46%. Although Pfizer has well-known problems, the shares appear to be undervalued in relation to their dividend yield and future prospects. There is an excellent post by Fat Pitch Financials on SeekingAlpha setting forth the case for Pfizer.
Anything can happen in a week, and other Dow stocks could raise their dividends, but we are probably looking at something closely resembling the final Dogs of the Dow list as of December 29, 2006.
The market is looking toppy and the yield of the 10-year bond has risen to 4.62%. I would not be surprised to see a shakeout in the days ahead, although perhaps not a full-scale correction just yet. The energy sector weakened this week but the Philadelphia Bank Index is starting to strengthen against the S&P 500, and that is always a good sign for the overall stock market.