12 Dow Stocks With At Least 2% Dividend Yields

Dividend stocks can be an excellent source of reliable returns during unpredictable periods in the market. A dividend is only as good as the company paying it, however, and some of the highest-yielding stocks are companies that may be in financial stress.

The 30 stocks that make up the Dow Jones Industrial Average are carefully chosen blue-chip American companies that investors can rely on. The Dow stocks may not necessarily generate massive share price returns, but they generally have strong balance sheets, durable businesses and reliable dividends.

The great thing about dividends is that they compound over time if they are reinvested. Even just 2% dividend compounded over time can generate nearly a 50% gain over 20 years.

Dow Dividends

There are currently 12 stocks in the Dow that pay dividend yields of at least 2%:

1. Verizon Communications Inc. VZ, 4.1% yield.
2. Pfizer Inc. PFE, 3.9% yield.
3. 3M Co MMM, 3.3% yield.
4. Walgreens Boots Alliance Inc WBA, 2.9% yield.
5. Cisco Systems, Inc. CSCO, 2.9% yield.
6. Johnson & Johnson JNJ, 2.9% yield.
7. JPMorgan Chase & Co. JPM, 2.8% yield.
8. Travelers Companies Inc TRV, 2.4% yield.
9. Home Depot Inc HD, 2.3% yield.
10. Goldman Sachs Group Inc GS, 2.2% yield.
11. Boeing Co BA, 2.2% yield.
12. Intel Corporation INTC, 2.1% yield.

Benzinga’s Take

A quick way to judge the reliability of a dividend is to check a stock’s payout ratio. The payout ratio represents the percentage of a company’s earnings that are paid out via dividends. A payout ratio at or near 1 may be a sign of an unsustainable dividend.

Do you agree with this take? Email feedback@benzinga.com with your thoughts.

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Photo credit: Mike Mozart, Flickr