The Dow Jones Industrial Average consists of thirty American blue chip companies, many of which pay dividends to their shareholders. Investing in dividend stocks is a proven strategy that allows investors to generate passive income from their stock holdings.
A company’s dividend yield is calculated by dividing the annual dividend payment per share by the company’s current share price.
These are the stocks with the highest dividend yields in the Dow Jones Industrial Average.
Stocks with the highest dividend yield in the Dow Jones Industrial Average
*Data below as of February 27, 2024
1. 3M Company (MMM)
3M produces a variety of products used by both businesses and consumers. The St. Paul, Minnesota-based company makes everything from building materials, electronic components and orthodontics to perhaps its best-known product: adhesive tape. 3M has been paying dividends to shareholders continuously for more than 100 years.
- Dividend yield: 6.58 percent
- Annual dividend: $6.04
2. Verizon Communications (VZ)
Verizon is a leader in communications and technology services. Together with AT&T and T-Mobile, they provide the majority of mobile phone services in the US. Verizon generated more than $133 billion in revenue in 2023.
- Dividend yield: 6.70 percent
- Annual dividend: $2.66 per share
3.Dow Inc. (DOW)
Dow is involved in the production of various chemicals used in various industries. The segments include packaging and specialty plastics, industrial intermediates and infrastructure, as well as performance materials and coatings. Dow is headquartered in Midland, Michigan.
- Dividend yield: 5.0 percent
- Annual dividend: $2.80
4. Chevron (CVX)
Chevron is an integrated energy company engaged in activities such as the exploration and production of oil and natural gas. Berkshire Hathaway, led by Warren Buffett, was among Chevron’s largest shareholders as of December 2023.
- Dividend yield: 3.99 percent
- Annual dividend: $6.16
5. International Business Machines (IBM)
IBM is one of the largest technology companies in the US and generates more than two-thirds of its revenue from software and consulting services. The Armonk, New York-based company has paid dividends for more than 100 years in a row.
- Dividend yield: 3.61 percent
- Annual dividend: $6.64
6. Cisco systems (CSCO)
Cisco offers a variety of networking, security and cloud solutions and generated revenue of $57.0 billion in fiscal 2023. The company is highly profitable, earning nearly $20 billion in operating cash flow in fiscal 2023.
- Dividend yield: 3.31 percent
- Annual dividend: $1.60
7. Coca-Cola (KO)
Coca Cola Co. owns a variety of different beverage brands that it sells in more than 200 countries and territories. The products have been sold in the US since 1886 and the brands account for 2.2 billion of the estimated 64 billion servings of all beverages consumed worldwide every day.
- Dividend yield: 3.20 percent
- Annual dividend: $1.94
8. Amgen (AMGN)
Amgen is a biotechnology company focused on the discovery, development and production of human medicines. The company uses tools such as advanced human genetics to understand diseases and human biology.
- Dividend yield: 3.14 percent
- Annual dividend: $9.00
9. Johnson & Johnson (JNJ)
Johnson & Johnson develops and produces a variety of healthcare products. Some of the well-known brands include Band-aid, Neutrogena, Tylenol, Benadryl and more. The company was founded in 1887 and is headquartered in New Jersey.
- Dividend yield: 2.96 percent
- Annual dividend: $4.76
10.Goldman Sachs (GS)
Goldman Sachs is a global financial services company engaged in various financial activities such as investment banking, investment advisory, equity and debt underwriting and more. The New York-based company was founded in 1869 and has offices in major financial centers around the world.
- Dividend yield: 2.82 percent
- Annual dividend: $11.00
Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making any investment decision. In addition, investors are advised that the past performance of investment products does not guarantee future price increases.
