Top 10 Dow Jones stocks with the best dividends

Before analyzing which are the best stocks of the Dow Jones and which are the titles that have performed worse in the last year, it is necessary to understand the origin of this index. Its origins can be traced back to the Dow Jones Indices LLC. It was created in 1882 by American journalists Charles Dow and Edward Jones. Initially, the index grouped only the 12 most sustainable companies of the time, then it arrived at 20 in 1916 and the last time at 30 in 1928. It is the oldest stock index in history.

The Dow Jones is a basket of 30 titles calculated using a weighted average whose value fluctuates depending on the behavior of its components. In this case, if most of the titles that make up the Dow Jones are down on the stock exchange, the index could fall, and, conversely, if most of the titles rise, the index could rise.

In other words, it is a stock index of the 30 largest companies by market capitalization of the New York Stock Exchange (NYSE), excluding transport and public services. The shares that make up the index are known as blue chips.

Image of the wall street sign

Top 10 Dow Jones Stocks with the Best Dividends

As we said, the Dow Jones is one of the main global indices. Almost all of the 30 stocks of the Dow Jones Industrial Average pay dividends, but not all of them have exceptionally high dividend yields. Ten of the 30 stocks of the Dow yield 3% or more, but due to the selectivity of the Dow, it can be a great place to look for yield if you are looking for Dividend Aristocrats (stocks that have increased their dividends for at least 25 years in a row) or high-dividend blue-chip stocks. With this in mind, what are the highest dividend-paying stocks today in the Dow?

2022 has undoubtedly been a difficult year for the stock market and many of the major indices have suffered double-digit losses. Following the price drop, the dividend yields of many components are on the rise heading into the new year.

However, of the 30 components of the Dow Jones, 27 stocks pay dividends. Currently, the only names that do not pay dividends are Boeing Co (NYSE: BA), Walt Disney Co (NYSE: DIS), and Salesforce Inc (NYSE: CRM). The average payout was around 2.57% for the 30 components of the Dow Jones, with the top four paying 5% or more.

The stocks that pay the highest dividends of the Dow:

TitleDividend yield
Verizon (VZ)6.76%
Dow Inc (NYSE: DOW).5.57%
JPMorgan Chase & Co (NYSE: JPM)5.53%
Walgreens Boots Alliance (WBA)5.12%
Dow Inc. (DOW)5.74%
3M (MMM)4.94%
Amgen (AMGN)3.24%
Cisco Systems (CSCO)3.20%
JPMorgan Chase & Co (NYSE:JPM)3.0%

Like the index itself, the highest dividend stocks of the Dow are established, high-quality American companies. Many of them have more than 100 years. For some of them, however, their best days are behind them. Some have very high dividend payout ratios that show they are returning most of their cash to shareholders at this point, rather than reinvesting in their business.

Top 5 Best Dow Jones Stocks for Yield in the Last Year

With markets sharply down in 2022 due to rising inflation, recession risks, and strong interest rate hikes, Merck, Chevron, Amgen, and Travelers Cos. Caterpillar have become the top five Dow Jones stocks this year.

NameVar %
Merck44.32%
Chevron42.79%
Amgen17.85%
Travelers Cos15.48%
Caterpillar8.18%

Top 5 Best Dow Jones Stocks for Profitability in the Last 3 Years

Name3 Years
Caterpillar70.30%
Apple67.08%
UnitedHealth66.03%
Chevron51.63%
Goldman Sachs43.77%

Caterpillar

Caterpillar Trucks is the world leader in the production of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. It operates through the main Cat, Cat Financial, Cat Reman, and Cat brands, as well as many other specialized brands. This index is called blue chip stocks.

Apple

Founded in 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne, with the intention of selling the first personal computer called Apple I. The headquarters is in Cupertino, California. Today Apple is the largest technology company by revenue and the second-largest producer of mobile phones.

UnitedHealth

UnitedHealth is a US health insurance and healthcare company based in Minnetonka, Minnesota. It is the seventh largest company in the world by revenue and was founded in 1977 to organize the parent company Charter Med, owned by Richard Taylor Burke, founded in 1974.

Chevron

Founded in 1870, Chevron is an American multinational energy company. This company has grown rapidly through collaborations with companies like Texaco. Today it is involved in all sectors of oil and natural gas, including exploration, hydrocarbon production, refining, marketing and transportation, production and sale of chemicals, and energy generation.

Goldman Sachs

Founded in 1869, Goldman Sachs Group, Inc. is one of the world's largest multinational investment banks based in New York City. It also provides financial services, including investment management, securities, wealth management, privileged intermediation, and securities underwriting. Goldman Sachs is a major dealer and, more generally, a major market maker in the US Treasury securities market.

Where to buy Dow Jones stocks

Scalable Capital

Advantages of investing with Scalable Capital
2.3% annual interest on liquidity
Savings plan from 1 euro
Possibility to invest in fractions of shares
Zero commissions on shares with the Prime Broker plan

Scalable Capital is one of the best brokers to buy Dow Jones stocks for several reasons. First of all, Scalable Capital offers an efficient and reliable trading platform, which allows investors to execute orders quickly and accurately.

In addition, Scalable Capital offers a range of interesting tools for market analysis, which allow investors to make informed investment decisions. With this broker, you can invest in ETFs or shares, which allows investors to diversify their portfolios.

Finally, Scalable Capital offers excellent customer service available through chat, phone, or email to receive assistance on any aspect of trading or account.

Top 5 Best Dow Jones Stocks for Profitability in the Last 5 Years

 TitleProfitability last 5 years
1Nike+78%
2McDonald's+62%
3Coca Cola+42%
4Boeing+29%
5Cisco+34%

Nike

Nike Inc. is a world-leading multinational company that designs, develops, manufactures, markets, and sells footwear, apparel, equipment, accessories, and services. The multinational also provides services such as leasing and product support.

McDonald's

Founded in 1940 as a restaurant, McDonald's has become a leading fast-food chain. In 2016, McDonald's became the world's largest restaurant chain by revenue, serving over 69 million customers daily in over 36,900 outlets in more than 100 countries.

Coca Cola

Founded in 1886, The Coca-Cola Company produces, retails, and markets soft drink concentrates and syrups. It is best known for producing carbonated drinks such as Coca-Cola, Diet Coke, Fanta, and Sprite, but also deals in still drinks such as water, juices and tea-based beverages, ready-to-drink teas, and coffees, sports drinks, dairy products, and energy drinks.

Boeing

Boeing is one of the world's largest aircraft and defense contractors and the largest dollar exporter. Founded in 1916, The Boeing Company designs, manufactures, and sells aircraft, jet engines, rockets, satellites, and missiles worldwide; it also provides leasing and product support services.

Cisco

Cisco Systems, Inc. is a multinational technology group that develops, produces, and sells network hardware, telecommunications equipment, and other high-tech products and services. Through its various subsidiaries, Cisco also focuses on IoT, domain security, and energy management.

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Worst Dow Jones stocks for profitability in the last year

The increase in inflation and the tightening by the Fed have made it a difficult year for stocks. The major indices are down across the board. The Dow Jones Industrial Average has fallen 15.3% as of June 30, the worst first half since 1962.

Only nine Dow companies are up in 2023.

Here is a rundown of the five worst-performing Dow stocks so far this year:

CompanyLast Year Performance
Intel-47.96%
Walt Disney-40.03%
Salesforce Inc-38.81%
Walgreens Boots-31.86%
3M-28.57%

In conclusion, for those who are wondering how to buy American stocks, one strategy could be to look at the Dow Jones index. As we said, this one includes 30 of the largest public companies in the United States and represents a cross-section of the American economy. By buying shares of companies included in the Dow Jones index, investors can get wide exposure to the American stock market.

FAQs

What criteria classify a Dow Jones stock as a high-dividend blue-chip stock?

A Dow Jones stock is considered a high-dividend blue-chip stock if it meets the following criteria:
It is a component of the Dow Jones Industrial Average.
It has a long history of paying dividends.
It has a relatively high dividend yield.
It is considered a financially strong company.

Which factors determine the dividend yields of Dow Jones stocks?

The dividend yield of a Dow Jones stock is determined by a number of factors, including the company's profitability, its payout ratio, and the current interest rate environment. Generally speaking, companies with higher profitability and lower payout ratios tend to have higher dividend yields.

How does the current economic climate affect the dividend payouts of Dow Jones companies?

The current economic climate can have a significant impact on the dividend payouts of Dow Jones companies. In a strong economic environment, companies are more likely to increase their dividend payouts, as they have more cash available to do so.

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