Nearly all 30 stocks in the Dow Jones Industrial Average pay dividends, but not all of them are exceptionally high dividend yields. Sixteen of the 30 stocks in the Dow yield 2% or more, but because of the Dow’s selectivity, it can be a great place to turn for yield if you’re seeking Dividend Aristocrats (stocks that have raised their dividends at least 25 years in a row) or high-dividend, blue-chip stocks. With that in mind, what are the highest-paying dividend stocks in the Dow today?
Highest Paying Dividend Stocks in the Dow
- Verizon (VZ)
- Dow Inc. (DOW)
- Chevron (CVX)
- IBM Corp (IBM)
- Cisco (CSCO)
- Johnson & Johnson (JNJ)
- Amgen (AMGN)
- Merck (MRK)
- Coca-Cola (KO)
- Procter & Gamble (PG)
Like the index itself, the highest-paying dividend stocks in the Dow are well-established, high-quality American companies. Many are over 100 years old. For some of them, however, their best days are behind them. Some have very high dividend payout ratios that show they’re returning most of their cash to shareholders at this point—rather than reinvesting in their business.
Below, I take a closer look at each of the highest-paying dividend stocks in the Dow and separate the dogs from the dividend champs.
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1. Verizon (VZ)
Dividend Yield 6.1%
Telecoms typically pay high dividends, and the highest dividend yield in the Dow almost always belongs to Verizon. Verizon is one of the top five U.S. wireless carriers but faces stiff competition from number-one AT&T (T) and its smaller (but recently merged) competitors Sprint and T-Mobile. All the telecoms have spent recent years lowering prices and sweetening plans to lure customers, which has resulted in good deals for consumers but has cut into corporate revenues and earnings. Verizon’s sales initially peaked in 2015, and it saw lower revenues in 2016-2017. But top-line growth swung higher in 2018, and after the 2020 debacle, the top line is once again in the ascendant.
For its part, Verizon is investing heavily in forward-looking ventures, including the “Internet of Things” and digital content. While economic uncertainty persists going forward, it should be kept in mind that VZ has a tendency to outperform other Dow 30 components in periods of economic weakness, thanks largely to its healthy subscription-based business. In the Great Recession of 2008-2009, for instance, VZ experienced a price drop of only 33% compared with a far more devastating 50% drop for the broad market.
2. Dow Inc. (DOW)
Dividend Yield 5.3%
Dow is a commodity chemical producer which many investors consider to be both a “contrarian cyclical” play as well as having short-cycle exposure. While DOW’s stock price fell 58% during the early 2020 market rout, its long-term history of maintaining a healthy dividend was left intact and makes it a worthwhile consideration for income-oriented investors.
And while other industries are likely to be negatively impacted by inflation, Dow should thrive in such an environment. Indeed, management recently observed that “inflation has always been a positive for our business, and over the last 30 years, when the Fed raises interest rates, that typically tends to drive outperformance in our sector versus the other sectors.” Moreover, Dow should benefit as global demand for commodities chemicals increases as economies around the world strengthen.
3. Chevron (CVX)
Dividend Yield 4.4%
Chevron is one of the world’s largest oil companies, with energy exploration, production, refining, trading and transport operations that circle the globe. Founded in 1879, Chevron has paid dividends since 1970.
Like the rest of the energy sector, Chevron’s stock tanked in early 2020 but has since returned more than 150%.
Chevron has a steady record of dividend payments despite crises in the energy sector, most recently increasing its dividend 8% this year. Although the stock’s dividend payout ratio has popped over 100% several times, CVX is currently on the Dividend Aristocrats list.
Like its peer Exxon, the stock is choppy at times and has a tendency to surge and crash with oil prices. But should crude hold its recent gains, CVX is a worthwhile choice for investors who want some exposure to the leaner and meaner energy sector.
4. IBM Corp. (IBM)
Dividend Yield 2.9%
Big Blue had been a laggard performer among Dow 30 stocks in recent years and fell 40% from its high to low during the early 2020 selling panic, to 90, before recovering to just under the 145 level in mid-2021. But it’s majorly changed character this year, rising more than 40% in 2024 alone, which makes it the fourth-best-performing Dow 30 stock this year.
IBM’s revenues have declined since peaking at $107 billion in 2011 but have gradually been heading higher in the last couple of years. IBM was slow to adapt as computing and data storage moved to the cloud, and competitors were quick to swoop in. IBM reacted by winding down older operations and investing in faster-growing businesses, but margins and cash flow eroded despite their best efforts, leading the stock to experience a lost decade from 2013 to 2023. The company increased the dividend each year anyway, with the latest one at $1.67 per share.
Things are starting to turn around for IBM, however, as management sees “high demand for our capabilities in several areas,” including hybrid cloud, where the company now has over 4,000 clients. And the stock has responded, finally breaking free of its 2013 highs earlier this year.
5. Cisco (CSCO)
Dividend Yield 2.9%
Cisco, originally founded in 1984, is a global technology company that specializes in connectivity. Its routers, switching, mobile and data center solutions are widespread and heavily integrated into its end users’ infrastructure.
The company has been steadily paying (and raising) its dividend for years, but the shares have struggled in recent history, still down more than 11% from their 2021 highs despite a major rally in tech shares.
The company recently announced the acquisition of cybersecurity analytics firm Splunk (SPLK), which is expected to add market-leading security to its networking prowess.
More pressing for shares have been signs that order flow is slowing for Cisco, with Q3 revenue down 13% year over year, Q4 revenue down 10%, and full-year 2024 revenue down 6%. The firm believes orders accelerated due to supply chain disruptions and, now that those disruptions are resolving, customers will delay orders while they digest the backlog.
That said, the firm has begun including Splunk in its quarterly figures, and software and subscriptions (including Splunk) now make up more than half (51%) of all revenue.
6. Johnson & Johnson (JNJ)
Dividend Yield 2.9%
Johnson & Johnson, the world’s largest healthcare company, offers broad exposure to multiple stages of consumer health, from their consumer health products (Like Tylenol, Neutrogena, Listerine, or Band-Aids - basically anything in your medicine cabinet) to medical tech and pharmaceutical products.
The company is a portfolio stalwart for investors and has been a slow but steady grower, returning only 29% over the last five years but without much in the way of chop or volatility.
The company is guiding for low-to-mid-single-digit growth next year which should not be surprising given the company’s defensive nature.
7. Amgen (AMGN)
Dividend Yield 2.9%
Originally founded in 1980, Amgen is an American biopharmaceutical company that has expanded its presence to 100 countries worldwide. It specializes in cardiovascular disease, oncology, bone health, neuroscience, nephrology and inflammation and specifically targets diseases for which there are no or limited viable alternative treatments.
In the company’s fiscal 2023, revenues came in at a record-high $28 billion and are expected to grow from there, with estimated fiscal 2024 revenues between $32.4 and $33.8 billion. Like most biopharmas, the company is constantly playing defense against generics, but Amgen’s robust pipeline offers it a sizeable moat.
As for the dividend, Amgen recently raised it by nearly 6% from $2.13 to $2.25 per share quarterly. Couple the yield with Amgen’s longer-term performance (up 60% in the last five years with relative stability) and its ability to weather the storm in the event of an economic downturn, and you get an attractive dividend stock.
8. Merck (MRK)
Dividend Yield 2.9%
Merck, originally founded as the American arm of the German Merck Group in 1891, is a global healthcare company that operates in two segments: Pharmaceutical and Animal Health.
The company has multiple drugs in production with “blockbuster” status (more than $1 billion in annual revenue), most notably Keytruda and Januvia, which are used in cancer immunotherapy and diabetes treatment, respectively.
The company has a strong track record of raising or maintaining its dividend over the last 25 years, most recently raising the dividend from $0.73 a share to $0.77 in December 2023.
As for the stock, MRK has risen by just 6% in the last year and 37% in the last five. Like many names on this list, it’s not the fastest horse, but it’s been heading in the right direction for years.
9. Coca-Cola (KO)
Dividend Yield 2.8%
Coca-Cola, the ubiquitous beverage company that needs no introduction, is the largest non-alcoholic beverage company in the world with over 200 individual brands comprising a portfolio of soft drinks, energy drinks, juices and beverages sold worldwide. While the stock is something of a slow grower (up only 31% in the last five years), its products are also resilient, which tends to help them hold up in times of trouble.
Analysts are projecting mid-single-digit growth for the next five years, although the company beat revenue expectations in its most recent quarter.
As for the dividend, Coca-Cola increased its quarterly dividend from $0.44 per share to $0.46 in 2023 and again to $0.485 in the beginning of 2024. Coca-Cola has a history of raising dividends at the beginning of the year, so the minor hike should come as no surprise.
10. Procter & Gamble (PG)
Dividend Yield 2.3%
Procter & Gamble is an American multinational consumer goods company that’s been doing business since 1837 and has been a Dow Jones constituent since 1932.
The brand portfolio is a who’s who list of products that you can likely find all over your home. From Pampers, Charmin, and Bounty to Tide, Crest, and Gillette, if you use it every day, odds are good that it’s made by Procter & Gamble.
The company has been steadily raising its dividend for the last two decades and most recently paid a quarterly dividend of a hair above $1.00 per share.
As for the stock, it’s up more than 17% in the last year and 46% in the last five (which is underperforming the Dow itself, which is up 60% in the last five years).
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*This post is periodically updated to reflect market conditions.
