Dow Jones Officially In Bull Market: Top 5 High-Dividend Stock Plays For 2023

The Dow Jones Industrial Average has officially entered a bull market, soaring more than 20% since the November 2022 lows.

Despite starting the bull market later than the S&P 500 and Nasdaq 100, which were more exposed to the AI-tech bullish wave, blue-chip stocks are now attracting investors eager to capitalize on the reliability and attractiveness offered by the 30 components of the Dow.

The SPDR Dow Jones Industrial Average ETF DIA, the leading ETF tracking the Dow index, is on a remarkable streak, recording three consecutive months of net inflows, amassing over $1.3 billion in the last three months.

Chart: DJIA Officially Enters Bull Market, All-Time Highs Are Just 6% Higher

The Dow’s Recipe: Attractive Valuations And High Dividends

What sets the Dow Jones components apart is their relatively cheaper valuation compared to other indices.

With a forward P/E ratio of 17x, the median stock in the Dow Jones is trading at a more attractive multiple than those in the S&P 500 (19x) and Nasdaq 100 (25x).

Beyond valuations, U.S. blue chip stocks are offering an appealing dividend yield. For investors seeking income and growth potential, these high-dividend plays present a compelling opportunity to capitalize on the ongoing bull market.

Also Read: BofA Analyst Cuts Price Target for AMD, Re-rates Semiconductor Companies, Expects Long-Term Stock Momentum For Sector

The Dogs Of The Dow For 2023: 5 High-Dividend Plays In The Blue-Chip Space

The ‘Dogs of the Dow’ is time-tested investment strategy popularized by Michael B. O’Higgins in the ’90s, which focuses on an annual selection of the 10 stocks with the highest dividend yield from the Dow Jones index.

Here are the 5 stocks with the highest dividend yield in the Dow Jones Industrial Average:

5) International Business Machines Corp. IBM
– Description: IBM is a leading tech giant, providing a wide range of IT solutions and services worldwide.
– Market Cap: $122.9 billion
– Forward P/E ratio: 14.1x
– Dividend yield (reported): 4.88%
– Dividend yield exp. (next twelve months): 4.92%

4) Dow Inc. DOW
– Description: Dow is a global materials science company, offering diversified solutions.
– Market Cap: $37.5 billion
– Forward P/E ratio: 16.2x
– Dividend yield (reported): 5.29%
– Dividend yield exp. (next twelve months): 5.31%

3) 3M Company MMM
– Description: 3M is a diversified multinational conglomerate producing healthcare & consumer products.
– Market Cap: $56.9 billion
– Forward P/E ratio: 11.6x
– Dividend yield (reported): 5.8%
– Dividend yield exp. (next twelve months): 5.8%

2) Walgreens Boots Alliance, Inc. WBA
– Description: WBA is a major pharmacy retailer with numerous drugstores globally.
– Market Cap: $25.6 billion
– Forward P/E ratio: 7.8x
– Dividend yield (reported): 6.49%
– Dividend yield exp. (next twelve months): 6.65%

1) Verizon Communication, Inc. VZ
– Description: VZ is a leading telecommunications company offering a wide range of services.
– Market Cap: $135.7 billion
– Forward P/E ratio: 7.0x
– Dividend yield (reported): 8.09%
– Dividend yield exp. (next twelve months): 8.22%

Now Read: Tesla Likely To Report Higher Q2 Earnings; Here’s A Look At Recent Price Target Changes By The Most Accurate Analysts

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