- With just 30 component stocks, the Dow Jones isn’t a very broad stock index. And since it’s full of the big blue chips that never wiggle more than
a percent or two in a single trading session, it’s often seen as a stodgy grouping of companies without much to offer investors. But while the Dow
certainly has its detractors among short-term traders with a need for instant gratification, these big-name blue chips have a lot of appeal to conservative
investors. And some of the biggest selling points for Dow stocks are their healthy dividends.
In fact, the “worst” dividend stock out of the top 10 high dividend yield components returns an even 3% annual rate. If you’re looking for
stable stocks with a hefty dividend payout, the Dow is full of them. To help you get your share, here is an updated list of the Top 10 Highest-Yielding
Dow Dividend Stocks.
Dow Dividend Stock #10 – Johnson and Johnson (JNJ)
Market Cap: $180.3 billion
Annual Dividend: $1.96
Dividend Yield: 3.0%
Health care products giant Johnson and Johnson (JNJ) is the
company behind profitable brands like Tylenol, Sudafed and Listerine. JNJ has posted strong quarterly profits in each of the last four quarters, topping
expectations every time, and reported strong earnings on April 20 with profits up 29%. Johnson and Johnson boosted its quarterly dividend in
spring of 2009 for the 47th consecutive year, and it’s realistic to think that the company will do so again at some point in 2010. With popular
products projected to rake in over $64 billion in revenue this year, JNJ will have plenty of profits to share.
Dow Dividend Stock #9 – Coca Cola (KO)
Market Cap: $125.1 billion
Annual Dividend: $1.76
Dividend Yield: 3.2%
Coca-Cola (KO) raised its dividend in mid-February by over 7%
after a strong sjowing at the end of 2009. The strength of Coke’s international
sales continue to be a huge source of growth for this company. It its fourth-quarter earnings report, Coke’s profit soared 55% in the fourth-quarter
compared with 2009 thanks to a 5% increase in worldwide beverage sales. Coca Cola most recently reported earnings on April 20 that include a 19% rise in first-quarter profits due to strong overseas sales.
Dow Dividend Stock #8 – McDonald’s (MCD)
Market Cap: $74.4 billion
Annual Dividend: $2.20
Dividend Yield: 3.2%
McDonald’s (MCD) has raised its dividend each and every year
since paying its first dividend in 1976 and remains one of the most reliable dividend providers on Wall Street. The largest fast-food chain in the
world continues to be as dominant as ever, with almost 32,000 locations worldwide. This global reach has been great for McDonald’s recently,
since a slight drop in U.S. sales was more than offset with an impressive fourth-quarter growth rate of 4.3% in Europe, Asia, the Middle East and
Africa. MCD earnings on April 21 were strong.
Dow Dividend Stock #7 – Chevron (CVX)
Market Cap: $163.9 billion
Annual Dividend: $2.72
Dividend Yield: 3.4%
In August 2009, Energy giant Chevron (CVX) declared a 4.6% increase to its quarterly
dividend to 68 cents per share (or $2.72 a year). As crude oil prices have broken through $85 and look to move higher, CVX stock could see bigger
gains ahead and more incentive for another dividend increase. The company has consistently increased its dividends for more than two straight decades.
Chevron reports first-quarter earnings on April 30.
Dow Dividend Stock #6 – Kraft Foods (KFT)
Market Cap: $46.0 billion
Annual Dividend: $1.16
Dividend Yield: 3.8%
After consistently raising dividends every year since it went public in 2001, Kraft Foods (KFT)
hit the brakes in 2009 by freezing its dividend. However, there may be a boost in the works sometime soon to the company’s already high 3.9%
dividend yield. The world’s second-largest food company reported strong fourth-quarter profits in February that were quadruple the numbers from last
year thanks to a successful three-year restructuring of its business. It is set to report first-quarter earnings on May 6. The company’s recent
acquisition of British snack maker Cadbury should also keep KFT firmly in the black with plenty of profits to share.