Moreover, the price of oil has plunged lately, as OPEC has begun to restore its output. In early May, Chevron reported (5/2/25) results for the first quarter of 2025. Production remained essentially flat from the prior year’s first quarter, as asset sales offset record Permian output after the acquisition of PDC Energy.
The concept of investing in the highest-yielding Dow 30 or Dow Jones Industrial Average stocks was reportedly popularized by Michael B. O’Higgins in his book “Beating the Dow,” published in 1991. These stocks are considered “dogs” or not desirable for investors. However, the investing strategy argues that these stocks can have significant gains in stock price plus relatively high dividend yields. This point is because the stock is thought to be temporarily oversold.
On the date of publication, Prakash Kolli held LONG positions in VZ, IBM and AMGN. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. The author is not a licensed or registered investment adviser or broker/dealer.
What is the Dogs of the Dow Strategy?
The result has been shareholders selling Intel stock, and the stock price has dropped to levels last seen in 2014 to 2015. Below are the current Dogs of the Dow ranked by share price, from lowest to highest. Alongside each of the stocks are billionaire investors who report holding the stock on their most recent Form 13-F filings with the U.S. As a result, this investing strategy is a great, low-risk way for unsophisticated investors to approach dividend growth investing.
MarketBeat’s live list of the Dogs of the Dow offers real-time information on the top dividend-yielding DJIA stocks, enabling you to adjust your portfolio in response to evolving market dynamics. This dynamic approach allows investors to capitalize on opportunities and respond to changing conditions, making the Dogs of the Dow strategy more adaptable and responsive to the market. Additionally, with the advent of real-time data and live lists, investors now have greater flexibility in executing the Dogs of the Dow strategy.
Intel
Click on a company’s name to jump directly to analysis on that company. And interestingly, we have eight dogs returning for another race this year. Only two of 222’s Dogs—Coca-Cola KO (KO) and Merck (MRK)—cycled out, replaced by JPMorgan Chase JPM (JPM) and 2021 Dog Cisco Systems CSCO (CSCO).
The process begins at the stock market’s close on December 31 each year. Investors select the 10 stocks within the Dow Jones Industrial Average (DJIA) with the highest dividend yields as the Dogs for the upcoming year. This selection is based solely on dividend yield, aiming to identify high-yielding blue-chip stocks.
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Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation. Which Dow stocks would make the cut as one of the Dogs of the Dow today? The following table answers that question by listing the ten highest dividend paying Dow stocks as of the most recent close. The table also identifies the five stocks (out of these ten highest dividend yielders) that have the lowest stock price. For more information on exactly what it takes for a stock to become one of the Dogs of the Dow or Small Dogs of the Dow, be sure to check out Dog Steps.
Dog of the Dow #3: Merck & Company (MRK)
- Its historical performance often closely aligns with that of the broader market, making it an appealing option, particularly during periods of value-focused investing.
- To implement this strategy, take the amount of money you have to invest and then divide it equally among the 10 highest-yielding stocks in the DJIA.
- For more information on exactly what it takes for a stock to become one of the Dogs of the Dow or Small Dogs of the Dow, be sure to check out Dog Steps.
- These “Dogs” are not underperforming or problematic stocks; they are the highest dividend-yielding stocks among the 30 components of the Dow Jones Industrial Average (DJIA).
Given the descriptions above, the Dogs of the Dow are clearly a very diverse group of blue-chip stocks that each enjoy significant competitive advantages and lengthy histories of paying rising dividends. On April 22nd, 2025, Verizon reported first quarter results for the period ending March 31st, 2025. For the quarter, Dogs of the dow 2023 revenue grew 1.5% to $33.5 billion, which topped estimates by $220 million.
- Revenue grew 8.7% to $8.1 billion, which was $60 million ahead of estimates.
- Management would be loathed to cut it, but in the uncertain semiconductor landscape, anything is possible.
- This simplicity and predictability have contributed to the enduring popularity of this investment approach.
- From Verizon trying to time the arrival of 5G, to Intel’s (INTC) increasingly perilous position in the chip business to IBM’s (IBM) fight for share among trillion-dollar tech giants, these dogs face a steep climb.
Merck employs 68,000 people around the world and generates annual revenues of more than $63 billion. The company did reiterate that biosimilar competition will likely impact sales in 2025. Repatha, which is used to control cholesterol, improved 27% to $656 million. Revenues were off 2% year-on-year to $11.1 billion, driven by currency headwinds, as well as the impact of refranchising bottling operations. Global unit case volume was up 2% in the quarter, while organic revenues were up 6%. Coca-Cola posted first quarter earnings on April 29th, 2025, and results were better than expected.
With that in mind, we have created a free list of over 200 high dividend stocks with dividend yields above 5%. Lastly, Verizon Communications (VZ 0.33%) has consistently been among the Dogs of the Dow because of the high dividend yields that telecom stocks have paid for years. The problem for Verizon in 2023 was that rising interest rates threatened the profits of the wireless giant, particularly given the massive debt load that the company has accumulated over time. Moreover, fears about lead-containing wireline cables raised the possibility of massive long-term legal liability, which pose at least some threat of having a negative impact on Verizon’s ample dividend payouts. The 10 stocks in the 2023 Dogs of the Dow were chosen because they had the highest dividend yields among the 30 stocks in the Dow Jones Industrials as of the last day of 2022. All investors had to do was take those 10 stocks and invest equal amounts in each of them.
Dogs of the Dow: All 10 High-Yield Stocks Analyzed
Don’t miss out on important revisions to the official Dogs of the Dow. The following is a list of the best performing high dividend paying stocks (4% dividend yield or more) that have gained over 15% during the first half of 2023. The resulting list contains 15 stocks that have gained an average of 20.7% during the first half of the year. If you are interested in more high dividend paying stock ideas, feel free to check Highest Dividend Paying Large-Cap Stocks Today.
That compares to 12.49% annualized for the Dogs of the Dow, 10.89% for the Dow 30 and 10.76% for the S&P 500. The principle of Occam’s razor suggests that solutions involving fewer variables are preferable to those that require more inputs. Simpler is better because getting the job done with just a few moving parts carries less risk of confusion and failure than a highly complex system. To implement this strategy, take the amount of money you have to invest and then divide it equally among the 10 highest-yielding stocks in the DJIA. The strategy consists of investing in the 10 highest-yielding stocks in the Dow Jones Industrial Average, an index of 30 U.S. stocks.
There is the Hartford Dividend and Growth Fund (HDGIX) for those preferring mutual funds. This mutual fund focuses on blue-chip companies known for their dividend payments and capital appreciation potential. It includes most of the stocks commonly found in the Dogs of the Dow strategy. Another critical aspect of the analysis involves comparing the Dogs’ performance to the broader market, represented by the DJIA.
Chris Hanks is an experienced physical therapist based in Austin, Texas. He earned his Doctor of Physical Therapy degree from the University of Texas at Austin in 2005 after completing his Bachelor of Science in Kinesiology in 2002. Dr. Hanks has been a licensed PT in Texas since 2005. He began his career at Central Texas Rehabilitation Hospital before moving to Austin Sports Medicine Center in 2010. In 2015, Dr. Hanks opened his own clinic, Capital City Physical Therapy, where he continues to treat patients.