Dividends of the Dow – What Dow 30 Stocks Pay a Dividend?

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Dow 30 Stocks

The Dow Jones Industrial Average is a widely used index tracking the top blue-chip stocks in the United States, and — dividend investors take note — almost every one of them pays a dividend.

The Dow 30, more formally known as the Dow Jones Industrial Average and abbreviated as DJIA, is the second-oldest U.S. market index. It was founded in 1896 by Charles Dow and his business partner Edward Jones as a proxy for the health of the overall U.S. economy — shortly after the creation of their first index: the lesser-known Dow Jones Transportation Average.

Instead of transportation, the DJIA focuses on large blue-chip stocks considered to be the overall “leaders” of the economy. Although the original index only included just 12 companies — the majority of which were in the industrial sector — the modern DJIA has shifted its attention to technology companies and now tracks 30 of them.

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The performance of the Dow 30 in the trailing 12-month period is charted below. While it failed to beat the S&P 500 this year, this smaller index still grew 36.7% after adjusting for dividends.

Chart provided by StockRover, start your free trial here.

The Dow Jones Industrial Index has been watched by income investors for years. The popular investment strategy “Dogs of the Dow” attempts to beat the DJIA each year by investing heavily in the 10 highest-yielding dividend stocks included in its 30 components.

Investors, however, need not limit themselves only to the top 10. Many of the Dow 30 pay dividends, and even those that do not are often considered to be strong investments.

That said, dividend investors in particular should be interested in the Dow Jones Industrial Index — of the 30 companies included, 27 pay a regular dividend. The highest-yielding equity in the index pays a dividend yield of 5.2%, and the average yield across the DJIA is 2.4%.

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Only three stocks in the Dow Jones Industrial Index do not pay a regular dividend: Boeing (NYSE:BA), Salesforce (NYSE:CRM) and Disney (NYSE:DIS). When we remove these stocks, there is a small change in the index’s overall performance. The chart below sets the original 30 stocks as a base (shown by the flat black line) while the blue line reflects the 27 dividend-paying stocks and how their average fluctuates relative to the original 30.

Data provided by StockRover.

Including only the dividend-paying stocks of the Dow 30 slightly improves its performance in the trailing six months — our “dividend only” list currently outperforms the original DJIA by 1.5% — but in the last year, it has fluctuated in either direction by roughly 3%.

The 27 dividend stocks used in this comparison are listed below. In ascending order for dividend yield, here are all of the Dow 30 stocks that pay a dividend.

Ticker Sector Consecutive Annual Dividend Hikes Market Cap Latest Close Price Projected 12 Month Dividend Yield Trailing 12 Month Dividend Yield
AAPL IT & Communications 9 $2,356.15B $148.11 0.62% 0.61%
NKE Consumer Products 0 $133.48B $105.96 1.28% 1.15%
MSFT IT & Communications 16 $1,844.91B $247.49 1.10% 1.03%
AXP Financials 0 $115.19B $154.15 1.35% 1.29%
UNH Financials 12 $502.32B $537.62 1.23% 1.15%
GS Financials 10 $131.68B $388.86 2.57% 2.19%
WMT Services 8 $415.47B $153.07 1.46% 1.46%
HON Consumer Products 0 $147.94B $220.05 0.00% 1.80%
CAT Industrials 8 $122.66B $235.70 2.04% 1.96%
HD Services 12 $332.64B $326.38 2.33% 2.25%
JPM Financials 11 $401.09B $136.74 2.93% 2.93%
TRV Financials 16 $44.27B $188.91 1.97% 1.92%
MCD Services 45 $201.42B $275.00 2.21% 2.01%
INTC IT & Communications 7 $121.09B $29.34 4.98% 4.98%
JNJ Health Care 59 $297.85B $177.24 2.55% 2.51%
PG Consumer Products 68 $347.68B $146.72 2.49% 2.46%
CSCO IT & Communications 10 $198.83B $48.40 3.14% 3.12%
MMM Health Care 63 $71.33B $129.04 4.62% 4.62%
AMGN Health Care 10 $151.40B $283.74 2.73% 2.73%
KO Consumer Products 59 $271.10B $62.69 2.81% 2.78%
MRK Health Care 10 $189.15B $107.50 2.57% 2.57%
WBA Services 6 $36.03B $41.66 4.61% 4.60%
DOW Materials 0 $38.51B $51.56 5.43% 5.43%
VZ IT & Communications 17 $163.88B $39.02 6.69% 6.59%
IBM IT & Communications 19 $134.15B $148.37 4.45% 4.44%
CVX Energy 19 $355.21B $183.70 3.09% 3.09%

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jonathan

Jonathan Wolfgram is an editorial staffer who writes website content at Eagle Financial Publications. He graduated from the University of Minnesota with Bachelor’s degrees in Finance and Philosophy. Jonathan writes for www.DividendInvestor.com and www.StockInvestor.com.


 

 

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