One place investors will sometimes look for bargains is among underperforming stocks. More often than not, though, these businesses have weak returns for good reasons, which sometimes include declining market share and falling profits. This investing strategy clearly has issues.

The underperforming stocks approach has a better chance of working if you limit your search to members of the Dow Jones Industrial Average. These 30 stocks are among the most established businesses on the market, which gives them a much better chance of bouncing back from that underperformance. And because dividend yields rise in relation to falling stock prices, underperforming Dow stocks also tend to pay higher yields than their peers. Among veteran investors, this popular stock-buying strategy is referred to as buying the "Dogs of the Dow."

Coca-Cola's (NYSE: KO) 16% decline so far in 2023 puts it in the running to be one of these "dogs," as it is currently the fifth-worst-performing stock on the Dow. Does that discount make it a compelling buy today? I believe it does. Here are a few good reasons to like this laggard right now.

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Source Fool.com