Top Dividend Yielding Stocks in the Dow
Here are my personal picks for dividend stocks in the Dow Jones. I've also done some research and share a little about each company so you can make a decision if these.
Cisco Systems CSCO - 3.35% Dividend
If you are looking for a stock that pays a high dividend but is also cheap, you should consider investing in Cisco Systems CSCO. This high-quality company is a leader in networking equipment. Its shares are trading at 17 times forward earnings and yield 2.7%. Its free cash flow is devoted to paying dividends and buybacks, and the company has increased its dividend payout every year since 2011. The company has also cut the number of shares outstanding over the past decade.
If Cisco hadn't been acquired by Microsoft, it would have been in the upper echelon of Dow 30 companies. Now, Cisco has turned its attention to other revenue streams, and its CEO, John Chambers, recently said that the Internet-of-Everything will help it become the largest IT solutions provider in the world. But despite its growth prospects, investors should avoid Cisco for now.
3M Co. MMM - 4.07% Yield
This is an excellent stock to invest in because of its high yield and strong profitability. Its recent investment in a new facility in Clinton, Tennessee, is helping to expand its production capacity for the Command and Filtrete product lines. While 3M has recently divested its food safety business, it will combine with Neogen to provide long-term profitable growth. Investors might also want to consider moving their capital to Dividend Kings stocks, which are also among the top dividend yielding stocks in the Dow.
A recent report by the Dividend Channel highlighted the attractiveness of 3M Co. MMM stock with its 4% dividend yield. It also highlighted the company's strong quarterly dividend history and favorable long-term multi-year growth rates across key fundamental data points. For investors concerned about volatile markets, these stocks could be a good option. Investing in such companies could help you get the dividends that you've been looking for without putting up too much money.
JPMorgan Chase & Co. JPM - 3.09% Dividend Yield
In the mid-1980s, the Federal Reserve allowed three large bank holding companies to conduct underwriting activities. Chase was included in that group. Underwriting activities were limited to five percent of the firm's revenue. That limit was increased to 25 percent in 1989. JPMorgan Chase has since expanded into the underwriting of corporate debt. Despite its global reach, the company is still headquartered in New York City. Its primary markets are Europe, Asia-Pacific, and the Americas.
Today, the company's services include investment banking, commercial banking, wealth management, and other financial services. Its four segments include Consumer & Community Banking, Corporate & Investment Bank, Commercial Banking, and Asset & Wealth Management. Its consumer and business banking division provides services through ATMs, bank branches, and online. In addition, the company provides investment banking and retirement plan services for individual clients. Those seeking information about the company's financial services should visit its investor relations website.
Verizon Communications VZ - 4.97% Yield
The company has been paying down debt since 2014 and recently purchased Vodafone Group's stake in its wireless joint venture. Its executives are also new: CEO Hans Vestberg was previously the CEO of Ericsson and Chief Financial Officer Rima Qureshi comes from Ericsson. Verizon's wireless business is more diversified than rival AT&T, with nearly all of its earnings coming from this business.
The dividend dog catcher's first priority is picking dividend payers that pay higher than $1K invested in them. The only exception to this rule is Verizon Communications VZ, which achieved overbought condition only once in May. Analysts typically over-estimate the future share price of dividend stocks, so it's best to buy those that are at least 20% higher than the price you invested.
The stock has a Relative Strength Rating of 57 out of 99. The best growth stocks have a RSR over 80. In addition, Verizon has a Composite Rating of 63 out of 99, which includes five proprietary ratings. For investors who are more cautious, you could look to large ETFs that track the S&P 500. If you're not sure which stocks to buy, you can start with these large, dividend-paying ETFs.
Walgreens Boots Alliance WBA - 4.47% Dividend
The company has an impressive track record of paying dividends and has been in business for over 170 years. Its dividend has increased every year and it is paying a very generous one, at an average of $1.91 per share. The company also has growing interests in full-service health clinics and specialty pharmacy management systems. These are just a few of the reasons that you should consider buying WBA.
The company recently increased its dividend by 2.1% and has increased it for 46 years in a row. This makes its dividend yield 4.53%, which is higher than the average for the S&P 500. In addition, it has grown its dividend every year and is well-covered with an average annual cash dividend payout ratio of 38.9%. Additionally, Walgreens has a solid track record of raising its dividend, and this should continue.
Despite a lackluster market, Walgreens Boots Alliance WBA is a dividend dog. The company's dividend yield is higher than its price, making it an excellent buy for income investors. As a result, it could become an elite fair-priced dog by the end of the year. The Dow Dogs are up in nine of ten months, with only Walgreens Boots Alliance missing out on the ideal price-to-dividend ratio.
IBM Corp. IBM - 4.64% Dividend Yield
Among the many ways that IBM has helped the world become more prosperous are its corporate social responsibility efforts. The IBM Service Corps programci started more than a decade ago, allows employees to apply their professional skills to solving critical social issues. Teams work with community leaders to address high-priority problems in areas like health and economic development. IBM's Health Corps program, which focuses on rural India, combines data from a variety of sources to improve access to medications.
The company's success was largely due to its ability to make and distribute large-scale computer systems. Despite this, however, IBM didn't push the computer business hard until the 1950s, when Thomas Watson Jr. was hired to head the department. From there, IBM's computers began to move away from the mechanical switches of the Mark I to vacuum tubes of the Vacuum Tube Multiplier. This was a significant change, since vacuum tubes were easier to replace and maintain.
Chevron Corp. CVX - 3.15% Dividend
Despite recent gloomy headlines, Chevron Corp. CVX remains one of the best dividend stocks in the Dow. The company participates in all aspects of the fossil fuel business, from exploration and production to the manufacture of refined products. Low oil prices are good for the company's downstream operations, stabilizing its cash flow. While some companies may have scale issues, Chevron has managed to do so without sacrificing its financial flexibility. The company's strong balance sheet and AA credit rating allow it to enter unpredictable downturns in the oil market, take advantage of opportunistic investments, and defend its dividend track record.
While other companies may be able to match Chevron's impressive quarterly dividend history, Forbes does not consider CVX a top investment right now. The company's YTD total return, however, beats that of the broader market by a large margin. Chevron's dividend yield of 18.3% is one of the highest among Dow stocks, making it an ideal dividend stock to consider for a long-term portfolio.
Dow Inc. DOW - 4.18% Yield
The Dow, as a stock index, has a history of rewarding investors with large dividend payouts. These are American companies that have been around for many years. Their high dividend payout ratios prove that the companies are delivering solid returns to their investors. In fact, the dividend payout ratios of the top-yielding Dow stocks are far higher than those of the S&P 500.
In addition to being among the top dividend yielding stocks in the broader market, Dow is a leading industrial company. Its portfolio is diversified in industrial and consumer goods, with a strong focus on delivering differentiated solutions for customers in growth markets. It currently operates 113 manufacturing facilities in 31 countries, with over 37,000 employees. The company's dividend history is presented on a split-adjusted basis, so investors should be aware of that.
If you have some Dow stock, it's best to buy it as soon as possible. If you have any questions or concerns, contact the transfer agent of your Dow stock, Computershare. If your stock is held by a broker, then you should contact your broker directly. The company will be happy to help you. A high-quality dividend stock can be worth a higher price in the future.
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