Buy dow jones industrial stock dividends

Top 10 Dow Jones Industrial Average Stocks Sorted by Dividend Yield

I analyzed the Dow's 15 highest yielding stocks with a goal of selecting the stocks most likely to maintain and increase their dividends in the future. Pfizer, Cisco Systems, and Intel have everything I look for in a dividend stock - reasonable valuation, growth potential, clean balance sheet, strong cash flow, and a low payout ratio.

Verizon, Chevron, and Exxon Mobil have unsustainable dividends and are at risk to cut payments in the future. Dividend investing has never been more popular. With interest rates still near all-time lows, investors continue to search for yield wherever they can find it. I generally don't look for stocks with the highest yields, since many companies have put themselves in positions where they can't service the dividend.

This forces them to either cut the dividend or even worse, increase debt.

I look for stocks that have a nice yield today, but are also in a position to continue increasing future dividend payments. With all that being said, this analysis is fairly narrow in that it only considers the 30 stocks listed on the Dow Jones Industrial Average. Of those 30 stocks, I further narrowed the analysis down to the Dow's 15 highest stocks in terms of dividend yield.

In general, I looked for the following key attributes:. Based on my analysis in the table below, I recommend buying Pfizer NYSE: PFE , Cisco Systems NASDAQ: CSCO , and Intel NASDAQ: Each of these stocks is a cash flow machine, the most important aspect of being a high-quality dividend stock, in my opinion.

Each of these stocks also is attractively valued, has a clean balance sheet, and a high-likelihood of increasing dividend payments in future quarters. What I like most about Pfizer is that it's attractively valued This equals a PEG ratio of 1.

Even though Cisco isn't much of a growth play, their numbers are quite impressive across the board.

Cisco kind of reminds me of Apple NASDAQ: AAPL in the fact that they have so much cash, they simply don't know what to do with it all. I believe Cisco will have the Dow's highest yield in couple of years.

Intel is another stock that's just solid across just about every metric. After Pfizer, Cisco, and Intel, there are still some great dividend stocks leftover on the Dow. The stocks listed below are some of the top blue-chips that investors have relied on for many decades.

They have strong brands, long standing dividends, and long histories of profitability. Because of those factors, they also generally trade at higher multiples. So while I consider these stocks as good investments, you're probably not going to find any hidden value here:.

So far, I've covered 12 of the 15 highest yielding dividend stocks on the Dow Jones. That leaves 3 that I'm a skeptical of in the short-term. I'm not necessarily saying that these stocks are bad investments over the long-term, but each has increased their dividend to unsustainable near-term levels. Dividend cuts are generally not perceived favorably by the market, so I'd avoid buying these in the near-term if your focus is on dividend income and growth.

In the table above, I've summed up where Pfizer, Cisco, and Intel stack up against the 15 highest dividend yielding stocks on the Dow Jones.

10 Highest Dividend Yield Dow Stocks

Each generally has an attractive valuation, growth potential, a clean balance sheet, and is in a position to continue increasing its dividend. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it other than from Seeking Alpha. I have no business relationship with any company whose stock is mentioned in this article. REITs Dividend Ideas Dividend Strategy Dividend News Dividend Quick Picks Editor's Picks.

The 3 Best Dividend Stocks Of The Dow Apr. Summary I analyzed the Dow's 15 highest yielding stocks with a goal of selecting the stocks most likely to maintain and increase their dividends in the future. In general, I looked for the following key attributes: Capacity to sustain and increase dividend payments i. Want to share your opinion on this article?

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