Keith Speights, The Motley Fool
5 min read
In This Article:
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Verizon Communications offers both a juicy dividend and solid momentum.
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Chevron continues to reward shareholders with great dividends and hefty stock buybacks.
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Merck has a high dividend yield and the world's top-selling drug.
Many blue chip stocks pay attractive dividends. The Dow Jones Industrial Average (DJINDICES: ^DJI) is loaded with blue chip stocks. It stands to reason that many Dow stocks should pay dividends that investors like.
Granted, most stocks in the Dow Jones have high dividend yields, which, in my definition, must be at least twice the dividend yield of the S&P 500 (SNPINDEX: ^GSPC). However, some do. Here are the three highest-paying dividend stocks in the Dow -- and whether they're smart picks to buy right now.
Verizon Communications (NYSE: VZ) easily ranks as the Dow's highest-paying dividend stock, with a forward dividend yield of 6.21%. Even better, the company has increased its dividend for 18 consecutive years.
Most investors are probably quite familiar with Verizon. The company provides broadband and wireless services to millions of customers worldwide. Verizon was founded in 2000 with the merger of Bell Atlantic and GTE.
Some dividend stocks have high yields because their share prices have plunged. That isn't the case with Verizon, though. Its shares have jumped 9% year to date, a solid performance amid the stock market volatility.
Verizon's gains in 2025 and its ability to pay attractive dividends year after year are due to the company's underlying business strength. In the first quarter of 2025, Verizon generated industry-leading wireless service revenue. It posted the most wireless retail core prepaid net additions since 2021. The company also expanded its broadband market share.
Chevron (NYSE: CVX) comes in second place with its forward dividend yield of 4.81%. The company has an even more impressive dividend track record than Verizon, raising its dividend 38 years in a row.
The No. 2 spot is a familiar one for Chevron: It's also the second-largest U.S. oil company based on market cap, trailing only ExxonMobil. Chevron's roots date back to 1879 with the establishment of the Pacific Oil Company.
Dividends aren't the only way Chevron rewards shareholders. In the first quarter of 2025, the oil and gas giant spent $3.9 billion on stock buybacks. That's a higher amount than the $3 billion Chevron paid out in dividends during Q1.
Shareholders can probably count on more of the same going forward. Chevron's financial priorities include growing its dividend and steadily repurchasing shares.
