The stock market had a rough 2022 with many of the top indexes down double digits. Among the stock indexes that were down was the Dow Jones Industrial Average.
With declining prices, dividend yields on many of the components are up heading into the new year.
Here’s a look at the top-yielding Dow Jones stocks to start 2023.
What Happened: Created in 1896 by Charles Dow, the Dow Jones Industrial Average is one of the oldest and most followed equity indexes for overall stock market health. The Dow Jones Industrial Average consists of 30 stocks on a price-weighted basis.
The SPDR Dow Jones Industrial Average ETF Trust (NYSE: DIA), which tracks the index, was down 9.2% year-to-date (through Dec. 29).
Top Yielding Dow Jones Stocks: Of the 30 components in the Dow Jones, 27 of the stocks pay dividends. Only Boeing Co (NYSE: BA), Walt Disney Co (NYSE: DIS) and Salesforce Inc (NYSE: CRM) don’t currently pay out dividends.
The average payout was around 2.57% for the 30 Dow Jones components, with the top four all paying out 5% or more at the time of writing.
Here are the top 10 highest-yielding Dow Jones stocks to start 2023:
Verizon Communications Inc. (NYSE: VZ): 6.76% yield, stock -25.1% year-to-date 2022 (ytd)
Intel Corporation (NASDAQ: INTC): 5.57% yield, stock -50.8% ytd
Dow Inc (NYSE: DOW): 5.53% yield, stock -11.0% ytd
Walgreens Boots Alliance Inc (NASDAQ: WBA): 5.12% yield, stock -29.4% ytd
3M Co (NYSE: MMM): 4.94% yield, stock -32.2% ytd
IBM (NYSE: IBM): 4.68% yield, stock +3.7% ytd
Amgen, Inc. (NASDAQ: AMGN): 3.24% yield, stock +16.1% ytd
Cisco Systems Inc (NASDAQ: CSCO): 3.20% yield, stock -24.8% ytd
Chevron Corporation (NYSE: CVX): 3.19% yield, stock +49.5% ytd
JPMorgan Chase & Co (NYSE: JPM): 3.00% yield, stock -15.9% ytd
Why It’s Important: With the period of high inflation and the market downturn in 2022, investors may look for safety with blue chip stocks and dividend payers to start 2023.
While a stock paying dividends doesn’t guarantee the shares won’t fall, it can provide a level of safety and income for investors.
Some investors turned from growth stocks to value stocks in 2022 and that trend could continue in the new year.
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