The Dow Jones Industrial Average consists of 30 blue-chip stocks. For dividend investors, this is an interesting list, since 27 of the 30 companies pay a dividend. Many stocks are able to increase their dividend for several consecutive years. The top-yielding Dow stocks all have dividends that are well above average yields in the stock market.
Year-to-date the Dow Jones Industrial Average is up 14.06% at the moment of writing.
The average dividend yield for the Dow-30 is 2.21%, which is already a good rate. Also, the average number of consecutive years of dividend increases is high with 22 years. Getting close to the dividend aristocrats’ status.
At the moment three Dow-30 companies are not paying a dividend, which are:
- Boeing Company (BA)
- Walt Disney (DIS)
- Salesforce (CRM)
The table below lists the 10 DJIA stocks with the highest dividend yield (October 2021).
If you are considering allocating your money to the tech sector, the highest dividend payers are IBM, Cisco, and Intel with 4.49%, 2.64%, and 2.53%. Microsoft and Apple pay below the 1% mark, while Salesforce (CRM) is currently not paying any dividend to its shareholders.
The Financial Services sector is “the place to be” when looking for dividend increases. For example, Goldman Sachs (GS) declared a $2.00 share quarterly dividend, which is a 60% increase from the prior dividend of $1.25 per share. The current dividend yield for Goldman Sachs is around 1.50%.
Members can use our Dow-30 stock screener for more metrics.
Other Sources of Dividend Investment Ideas
There are several lists to quickly screen for businesses that regularly pay rising dividends.
- The Dividend Aristocrats Index is based on 64 companies part of the S&P 500 and with 25+ years of consecutive dividend increases.
- The Dividend Kings List is even more exclusive than the Dividend Aristocrats. It is comprised of less than 20 businesses with 50+ years of consecutive dividend increases.
- The MoneyInvestExpert Defensive Aristocrats is a performance-based top-10 selection of the Dividend Aristocrats to outperform the market in the long-term.
- Portfolio lists like the Berkshire Hathaway Portfolio or Bill Gates’stock portfolio can be a source.
- For the European focused investors, there is also the list of European Dividend Aristocrats.
- Dividend Champions are not necessarily members of the S&P 500 index, have increased their dividend for 25 or more consecutive years.
- 100+ years of dividend, the list of stocks that pay over 100 years of dividend can be a list of inspiration.
- Blue Chips stocks from the US or the European ones.
Next to selecting the right dividend stocks, important principles for successful long-term investing are Disciple, Diversification, Defensive & indeed Dividend. Read more about this in our free e-book.
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