I believe there is a passage in scripture or the Mishna that said in effect that even the dogs did not interrupt Israel's exodus from Egypt implying that the Egyptians used dogs to control Israelite slaves. Some people say that a Jew's home is akin to the temple and must be holy. Since dogs are not a kosher animal and could not be brought to the Holy Temple, it is not appropriate to allow a dog to enter one's own personal and holy temple, namely,mtheir home.
There are also practical difficulties concerning dogs. For one, the problem of finding "kosher dog food" especially for Pesach as, apparently almost all dog foods are chometz. Walking the dog on Shabbat and Yom Tov would also pose a problem especially for apartment dwellers (using a leash, picking up and disposing the waste, etc.)
Last but not least, many Jews who have adverse feelings towards dogs tend to be Hasidim who are often entrenched in the past. Dogs were often used by enemies of the Jews to attack them such as during the pograms and in concentration camps to name just two examples.
There is evidenced that frum Jews have indeed owned and kept dogs as pets. I seriously doubt that there is a true Halacha against it. The reason for the adversion towards dogs is likely more historical and tradition than anything else.
(Correction. There apparently IS a kosher brand of dod food (Evangers) that is certified chometz free by the CRC. I reasonably certain that CRC would not certify dog food kosher if having a dog was not allowed.)
As far as selling or breeding dogs dogs, I don't believe there is any evidence one may not do so. The Star K website has information concerning pets from the perspective of kashrut and laws concerning avoiding cruelty to animals. Like the CRC certification discussed earlier in my prior post, neither site mentions sale of a dog and what can be done with the proceeds. What if the original poster asked their rabbi if he would decline a donation from the proceeds of a sale of a dog?
Lastly, one must own a dog before they can sell it. Although it is feasible that a person can adopt or be given a dog as a gift, it is highly likely that they purchased the dog themselves. The only prohibition to selling a dog based on a brief Internet search is that a Jew can not own a dog if it would cause unnecessary fear in his family or community. I would the same would extend to his immediate community. As stated above, given the history of dogs and Jews, such uneasiness would exist in many Hasidic communities so the likely answer would be that one could not sell the dog to someone in such neighborhood. (Until recently I lived in a large coop housing complex whose security force many, many years ago use to patrol the grounds with German Shepard's to the fear of the many Holocaust survivors who lived in the complex. Unfortunately they didn't deter the criminal element from the nearby projects who'd still rob and mug residents.) Would it make a difference if the buyer were a non-Jew?