Dow Jones Industrial Average Hits Record High
The Dow Jones Industrial Average has reached a record high in 2025, with many of its components expected to finish the year at increased levels. This index is often regarded as a reliable indicator of market health and includes some of the highest-yielding blue-chip stocks.
As we move into 2026, it’s worthwhile to explore the top-performing dividend stocks within the Dow.
If you’re interested in dividend stocks, you’ll find quite a few options within the Dow Jones Industrial Average. Out of its 30 members, 28 are currently distributing dividends.
Investors looking to participate in the Dow can consider ETFs such as the SPDR Dow Jones Industrial Average ETF (NYSE: DIA). Alternatively, you can choose to invest in individual stocks from the 30 within the index.
A common investment strategy is to target the “dogs of the Dow,” which typically refers to the underperforming stocks in the index that offer higher yields.
Here’s a summary of the highest-yielding stocks on the Dow as we begin 2026, including their dividend yields and performance in 2025:
- Verizon Communications (NYSE: VZ): 6.8% yield, +1.9% in 2025
- Chemical Corporation (NYSE: CVX): 4.5% yield, +5.2% in 2025
- Merck & Co. (NYSE: MRK): 3.2% yield, +5.8% in 2025
- Amgen Inc. (NASDAQ: AMGN): 3.1% yield, +25.6% in 2025
- Procter & Gamble (NYSE: PG): 3.0% yield, -14.5% in 2025
- Coca-Cola (NYSE: KO): 2.9% yield, +12.3% in 2025
- UnitedHealth Group (NYSE: UNH): 2.7% yield, -34.7% in 2025
- Home Depot (NYSE: HD): 2.7% yield, -11.5% in 2025
- Nike (NYSE: NKE): 2.6% yield, -15.8% in 2025
- Johnson & Johnson (NYSE: JNJ): 2.5% yield, +43.1% in 2025
The overall average dividend yield for these top 10 companies stands around 3.3% as we enter 2026.
Notably, some of these high-yield stocks are favorites of renowned investor Warren Buffett. His recent changes as CEO of Berkshire Hathaway show that Chevron and Coca-Cola remain key parts of the company’s portfolio, along with investments in UnitedHealth made in 2025.
Interestingly, among the top-yielding Dow stocks, four saw a decline while six improved in their stock performance during 2025. UnitedHealth, Nike, and Procter & Gamble were some of the top-yielding, yet they ranked among the index’s lower-performing stocks.
This mix makes one think about the “dogs of the Dow,” hinting at the often misunderstood relationship between dividend yields and stock performance. Gains under 10% from leading companies, like Verizon, Chevron, and Merck, might reveal hidden opportunities.
In regards to the Dow itself, it underwent some adjustments over the years. For instance, Amazon.com joined the index in 2024, while Walgreens Boots Alliance was added later that year. Nvidia and Sherwin-Williams also made their way into the index, replacing older members like Intel and Dow Corporation.
The newest stocks added to the Dow currently have the following dividend yields:
- Amazon.com: 0%
- Nvidia: 0.02%
- Sherwin-Williams: 1.0%
Amazon stands out as one of the two non-dividend-paying stocks in the index, alongside Boeing. Moreover, Nvidia offers the smallest dividend yield of the existing dividend stocks, while Sherwin-Williams has a relatively low yield among its peers.
The average dividend yield for the entire Dow Jones Industrial Average is about 1.9% as we kick off 2026, a slight drop from the previous year’s 2%. Factors contributing to this change might include the new stock entries and the fact that a significant portion of existing stocks ended 2025 at higher values compared to the start of the year.
Many investors are now keeping an eye on whether any stocks within the Dow will increase their dividends in 2025, with a number of companies in the index having a solid history of doing just that.
