The “Dogs of the Dow” is an investment approach whereby investors allocate money to the 10 highest dividend-yielding blue-chip stocks listed in the Dow Jones Industrial Average, also known as the Dow 30. By rebalancing a portfolio and weighting it heavily towards the Dow stocks that offer the highest dividend yields, investors can beat the overall performance of the Dow Jones Industrial Average, or so the theory goes. The strategy first became popular in 1991 when author Michael B. O’Higgins published his book “Beating the Dow.” However, history shows mixed results with this investment strategy. The strategy has a track record mirroring the returns of the Dow rather than beating it. Still, investing in high-yielding dividend stocks is not a bad idea. Regular dividend payments can certainly help a portfolio, especially when reinvested. Here are three Dogs of the Dow to scoop up during a dip.

Verizon (VZ)

Verizon (NYSE:VZ) currently pays the highest dividend of any stock listed in the Dow Jones Industrial Average. The telecommunications giant pays a quarterly dividend of 66 cents per share, giving VZ stock a dividend yield of 6.70%. That’s a great yield and makes Verizon extremely attractive to investors who want to generate income from the blue-chip stocks they own. However, investors should be aware that the hefty dividend from Verizon is to help make-up for the dreadful performance of its share price in recent years.

In the last 12 months, VZ stock has risen only 2%, badly trailing the broader market. Looking out further, the situation is much worse. Over the past five years, Verizon’s share price has declined 30%, making it one of the worst performing stocks listed in the Dow 30. In January, Verizon reported a $5.8 billion write-down related to its declining wireline phone business, which still accounts for one-fifth of its annual revenue. However, the company did report strong growth in its number of wireless subscribers at the end of last year, providing a glimmer of hope for VZ stock.

IBM (IBM)

Among technology stocks listed in the Dow 30, IBM (NYSE:IBM) has the highest dividend yield. The legacy technology giant pays a dividend of $1.66 per share each quarter, giving it a strong yield of 3.59%. By comparison, both Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT) pay a dividend that yields less than 1%. Similar to Verizon, IBM has used its dividend to attract and retain investors despite the long-term decline in its share price. Between 2013 and 2023, IBM stock fell 32% and languished. However, the stock is now on an upswing, having gained 42% in the last 12 months.

With a 15% increase so far in 2024, IBM stock is now within sight of its all-time high. The resurgence has been due to a restructuring of the company’s operations and strong financial results that have followed. The company’s share price jumped 7% in January after it delivered fourth-quarter financial results that trampled Wall Street’s expectations. IBM crushed analyst estimates on the top and bottom lines, and reported a gross margin of 59.1%, the highest since 1999. Additionally, the company said that its business related to artificial intelligence (AI) doubled in size from Q3 of last year.

3M (MMM)

3M (NYSE:MMM), famous as the maker of Post-it-Notes and Scotch tape, pays a very strong dividend that is currently set at $1.51 per share each quarter, giving it a yield of 6.58%, only slightly below the yield on Verizon’s stock. The dividend yield attracts a lot of attention among retail investors. But it too has traditionally been used to mask underperformance in MMM stock. 3M’s share price has struggled mightily in recent years, having declined 17% year-to-date, and fallen 56% over the past five years.

The company has been bogged down by multiple lawsuits related to faulty earplugs it sold to the U.S. government and industrial chemicals that have been found in groundwater across America. Later this year, 3M plans to spinoff its healthcare unit, which will be a new publicly traded company called “Solventum.” At the end of January, 3M issued financial results that beat Wall Street estimates, but disappointed with forward guidance that fell short of forecasts, sending MMM stock lower. Despite the share price is now near a 52-week low, there’s no arguing that the dividend is attractive.

On the date of publication, Joel Baglole held long positions in AAPL and MSFT. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.