The top 13 Dow Jones dividend stocks as determined by analysts are covered in this article. Over time, investors have used a variety of dividend techniques to increase their profits. It is clear from historical data that stocks that pay dividends have frequently outperformed other investing categories. Choosing dividend-paying equities from the Dow Jones Industrial Average (DJIA) has certain special benefits.
Many dividend-paying stocks, particularly blue-chip corporations known for their steady dividend growth, are included in this index. The DJIA in 2023 experienced a notable 14% increase; 11 component stocks experienced declines during the year while 19 component stocks recorded gains. In December, when the year came to an end, the index broke all previous records and crossed the $37,000 threshold.
In addition to consistently producing strong returns over time, dividends have continued to be an important source of personal income growth. According to an S&P Dow Jones Indices analysis, dividend earnings’ share of personal income has steadily increased over time, highlighting its significance as a source of income.
Dividend income contributed 5.64% of the U.S. per capita personal income in 2012; this was up from 3.51% two decades earlier and 4.39% in the decade before. On the other hand, throughout the same time frame, capital market interest income has consistently decreased, falling from 13.51% in 1992 to 7.39% in 2012. The research states that the overall dividend income increased significantly from $187.6 billion in 1992 to $757 billion in 2012, or more than 300%, after being adjusted for inflation to $2000. In comparison, throughout the same period, interest income increased by less than 100%.
When choosing dividend equities for their portfolios, investors frequently give dividend yields top priority. But it’s crucial to remember that businesses with high yields but weak financial standing may have to cut dividends, particularly in light of rising interest rates and uncertainty surrounding the state of the world economy. As a result, high-yield investing methods ought to give equal weight to the companies’ quality and stability. The Dow Jones Dividend 100 Index Series monitors the performance of 100 high-yielding stocks—selected for their reliable dividend payments and solid fundamentals—within each covered market.
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Market players usually have two priorities when using any income strategy: yield and capital gain. When compared to their respective benchmarks, the Dow Jones Dividend 100 Indices have shown greater yields and equivalent capital gains over the long run. Assuming theoretical dividend reinvestment, the Dow Jones U.S. Dividend 100 Index’s total return over the June 30, 2001, to June 30, 2023 period averaged 11.7% yearly, according to a report by S&P Dow Jones Indices. This outperformed the Dow Jones U.S. Broad Stock Market Index, its benchmark, which returned 10.2% during the same period.
Among the most well-known dividend stocks in the DJIA are Dow Inc. (NYSE:DOW), 3M Company (NYSE:MMM), and Verizon Communications Inc. (NYSE:VZ). This article talks about some of the Dow’s top dividend stocks that analysts think are worth buying.
Top 13 Dow Jones Dividend Stocks
13. Disney Corporation
As of February 22, upside potential was 8.40%.
A global entertainment company, The Walt Disney Company (NYSE:DIS) is a multinational corporation. It is well-known for its varied portfolio of brands, intellectual rights, and entertainment services and is a major player in the worldwide entertainment market. The corporation stopped paying dividends for over three years following the epidemic, but it started paying them again in November 2023. The business announced on February 8 that its quarterly dividend would increase by 50% to $0.45 per share. As of February 22, the dividend yield on the stock was 0.70%. It is one of the top Dow dividend stocks that we have listed.
At the end of Q4 2023, 89 hedge funds that Insider Monkey was tracking held shares of The Walt Disney Company (NYSE:DIS); this number did not change from the previous quarter. These holdings have a combined worth of around $7.4 billion. In Q4, Trian Partners had the largest number of shares in the company, with about 32.3 million.
12. Verizon Communications Inc.
has an upside potential of 9.08%.
Verizon Communications Inc. (NYSE:VZ) is a global telecommunications firm that offers businesses, governments, and consumers products and services related to information, entertainment, and communications. As of February 22, the company had a dividend yield of 6.47% and paid a quarterly dividend of $0.665 per share. For the previous 17 years running, the company has increased its dividends. VZ is among the top dividend stocks in the Dow, with an upside potential of 9.08%.
From 61 in Q4 2023 to 63 in Q4 2023, Insider Monkey’s list of hedge funds with holdings in Verizon Communications Inc. (NYSE:VZ) increased. These holdings are worth more than $2.63 billion when combined.
11. Visa Inc.
Potential of 9.75%.
Global payments technology provider Visa Inc. (NYSE:V) makes electronic money transfers possible everywhere in the globe. With millions of retailers, financial institutions, governments, and customers connected, Visa runs one of the biggest retail electronic payment networks in the world. The business declared a quarterly dividend of $0.52 per share on January 25, which was consistent with its last payout. V is among the top dividend stocks on our list because of its 15-year history of steady dividend growth. As of February 22, the dividend yield on the stock was 0.75%.
Compared to 167 the previous quarter, 162 hedge funds in Insider Monkey’s database reported owning shares in Visa Inc. (NYSE:V) as of the end of Q4 2023. These interests are valued at around $26.5 billion in total. TCI Fund Management was the company’s largest stakeholder in Q4 among these hedge funds.
10. The Goldman Sachs Group, Inc.
9.84% upside potential.
One of the top international firms for investment banking, securities, and investment management is The Goldman Sachs Group, Inc. (NYSE:GS). The organization offers businesses, financial institutions, governments, and private citizens a broad range of investment banking services. As of February 22, the company had a dividend yield of 2.83% and paid a quarterly dividend of $2.75 per share. With a 9.84% upside potential, it is one of the top dividend stocks in the Dow.
The Goldman Sachs Group, Inc. (NYSE:GS) was held by 69 hedge funds as of Q4 2023, according to Insider Monkey’s database, an increase from 68 the previous quarter. These holdings are worth more than $6.33 billion in total.
9. Amgen Inc.
February 22 upside potential was 10.03%.
A global biopharmaceutical business, Amgen Inc. (NASDAQ:AMGN) specializes in the creation, production, and marketing of treatments for life-threatening diseases. The business announced a 5.6% increase in its quarterly dividend to $2.25 per share in December 2023. As the company has increased its dividend annually for 11 years running, AMGN is among the top dividend companies on our list. The stock’s dividend yield as of February 22 is 3.18%.
According to Insider Monkey’s database, Amgen Inc. (NASDAQ:AMGN) had 69 hedge fund positions at the end of Q42023, up from 60 the previous quarter. The total estimated value of the interests held by these hedge funds is $1.8 billion. In Q4, Two Sigma Advisors held the largest number of shares in the company, possessing approximately 1.15 million shares.
8. McDonald’s Corporation
has an upside potential of 10.09%.
Next on our list of the top Dow dividend stocks is McDonald’s Corporation (NYSE:MCD), a multinational fast-food business based in the United States. For the previous 47 years, the corporation has increased dividend payments to shareholders, and as of right now, each share is paid out a quarterly dividend of $1.67. The stock’s dividend yield as of February 22 is 2.27%.
63 hedge funds that Insider Monkey tracks reported owning shares in McDonald’s Corporation (NYSE:MCD) at the end of December 2023, compared to 70 at the end of the previous quarter. These holdings have a combined value of more than $2.09 billion.
7. Johnson & Johnson
11.97% as of February 22 was the upside potential
Johnson & Johnson (NYSE:JNJ) is a global company that works in the healthcare sector, specializing in consumer health goods, medical devices, and medicines. Analysts estimate that the company has an upside potential of 11.97%, making it one of the Dow’s top dividend stocks. Furthermore, during the previous 61 years, the corporation has increased its dividends. As of February 22, it had a dividend yield of 3.00% and paid a quarterly dividend of $1.19 per share.
At the end of Q4 2023, 81 hedge funds in Insider Monkey’s database were holding Johnson & Johnson (NYSE:JNJ), down from 84 the previous quarter. These interests have a combined worth of about $4 billion. In Q4, Ken Fisher’s Fisher Asset Management held the largest ownership position in the business.
6. Chevron Corporation
has 13.6% upside potential.
Listed sixth on our list of the Dow’s top dividend stocks is Chevron Corporation (NYSE:CVX). The American energy firm now pays a quarterly dividend of $1.63 per share and has a remarkable 37-year history of sustained dividend increase. The company has a 4.19% dividend yield as of February 22.
In Q42023, 71 hedge funds, down from 72 the previous quarter, held shares in Chevron Corporation (NYSE:CVX), according to Insider Monkey’s database. These holdings are worth more than $21.6 billion in total. With more than 126 million shares, Warren Buffett’s Berkshire Hathaway held the largest holding in the business.
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5. UnitedHealth Group Inc.
As of February 22, upside potential was 14.8%.
Operating in multiple healthcare areas, UnitedHealth Group Incorporated (NYSE:UNH) is a diversified healthcare organization. As of February 22, the company had a dividend yield of 1.44% and paid a quarterly dividend of $1.88 per share. Given that the company has increased its dividends for the previous 13 years running, it is one of the top dividend stocks on our list.
Hedge fund interest in UnitedHealth Group Incorporated (NYSE:UNH) increased significantly; at the conclusion of the quarter, there were 113 hedge fund stakes in the company. Compared to the 104 posts held in the prior quarter, this represented an increase. The combined va
4. Honeywell International Inc.
As of February 22, upside potential was 15.17%.
Multinational conglomerate Honeywell International Inc. (NASDAQ:HON) offers a broad range of products and services and operates in multiple industries. The business has increased dividends for 13 years running, and it now distributes a $1.08 quarterly dividend per share. As of February 22, HON has a dividend yield of 2.17%, making it one of our list’s top dividend stocks.
3. 3M Company
As of February 22, upside potential was 15.8%.
Next on our list of the top dividend stocks is 3M Company (NYSE:MMM), an American multinational business. The corporation has paid a quarterly dividend of $1.51 per share and has maintained a 66-year record of steady dividend increase. As of February 22, the dividend yield on the stock was 6.59%.
By the end of the fourth quarter of 2023, 62 hedge funds that Insider Monkey tracked owned 3M Company (NYSE:MMM), up from 54 the previous quarter. The total value of these stakes exceeds $1.75 billion.
2. Microsoft Corp.
As of February 22, upside potential was 16.7%.
The international technology business Microsoft Corporation (NASDAQ:MSFT) creates, produces, licenses, maintains, and markets a variety of consumer goods, computer software, and related services. Over the previous 11 years, the corporation has increased its rewards. As of February 22, it had a dividend yield of 0.75% and paid a quarterly dividend of $0.75 per share. Notable for its 16.7% potential upside, MSFt is among our list of the greatest dividend stocks.
1. Nike, Inc.
As of February 22, upside potential was 16.8%.
According to analysts, NIKE, Inc. (NYSE:NKE) is the finest dividend stock in the Dow. For the past 22 years, the international company, which is well-known for its athletic footwear, clothes, gear, and accessories, has increased its dividends. As of February 22, it had a dividend yield of 1.41% and paid a quarterly dividend of $0.37 per share.
