Focus on Strong Dividend Payers
Three significant companies in the Dow Jones that stand out with particularly high dividend yields, and thus may be interesting to private investors, are Verizon Communications, Chevron, and Merck.
Verizon Communications (VZ)
Verizon Communications currently leads among dividend payers in the Dow Jones with a dividend yield of about 6.3 to 6.6%. As one of the largest U.S. mobile service providers, Verizon boasts a stable dividend history.
Chevron (CVX)
Chevron follows with a dividend yield of around 4.5 to 4.8%. This company is one of the so-called Dividend Aristocrats, with over 38 consecutive years of dividend increases. Chevron benefits from its strong position in oil and gas production as well as technological advancements in the Permian Basin.
Merck & Co (MRK)
Merck also offers an attractive dividend yield of about 3.9 to 4%. As a leading pharmaceutical company, Merck impresses with a solid financial foundation and stable payouts.
These three companies regularly rank among the top dividend payers in the Dow Jones Industrial Average (DJIA) and are part of the ‘Dogs of the Dow’ strategy – an approach that invests in the ten DJIA companies with the highest yields.
Additionally, the portfolio of the ‘Dow 10 Strategy’ Trust shows these three firms as core components of a dividend-oriented investment within the DJIA.
Overall, these stocks offer a combination of high ongoing yield as well as stability through established business models in telecommunications (Verizon), energy (Chevron), and healthcare/pharmaceuticals (Merck).