2025 Dogs of the Dow: All 10 High-Yield Stocks Analyzed

The Dogs of the Dow strategy consists of buying equal-weighted amounts of the 10 highest-yielding stocks in the Dow Jones Industrial Average (DJIA) benchmark at the start of the year.

The DJIA has existed since 1896 and tracks 30 of America's largest and most well-known companies, including Apple, Walmart, Visa, and Johnson & Johnson.

Filtering this universe of blue chips by highest dividend yield can help identify out-of-favor stocks, known as Dow Dogs, that may be poised to rebound. And investors get paid a healthy dividend while they wait.

The table below contains a downloadable list of 2025 Dogs of the Dow with up-to-date dividend yields and Dividend Safety Scores™. 

Below the table you'll find:

Implementing the Dogs of the Dow strategy requires following three simple steps:

1) At the start of the year, buy the 10 Dow stocks that have the highest dividend yields in the group. Weight each position equally.

Using the 2025 Dogs of the Dow list above and assuming a $10,000 investment for the entire portfolio (approximately $1,000 per stock), that would mean buying the following number of shares:

2) Hold the portfolio for one year. Then, sell the Dow Dogs that have dropped off the top 10 dividend yield list. Replace them with new additions to the list. Rebalance the portfolio to ensure the 10 stocks have equal weights.

From 2024 to 2025, five Dow Dogs fell off – Intel, Walgreens, Dow, 3M, and JPMorgan. They were replaced by Johnson & Johnson, Merck, Coca-Cola, McDonald's, and Procter & Gamble.

3) Repeat the process every year.

Due to the cost of taxes associated with rebalancing, the Dogs of the Dow strategy may be more efficiently carried out in retirement accounts.

That said, investors considering the strategy should consider its mixed performance track record and drawbacks.

The Dogs of the Dow strategy began gaining popularity in 1988 when analyst John Slatter published an article in The Wall Street Journal noting the approach's success.

Slatter found that from 1973 to 1988 the Dogs of the Dow strategy returned 18.4% per year, almost doubling the Dow Jones Industrial Average's 10.9% annualized return.

Studying similar time periods, other researchers found results that matched Slatter's general observation:

However, subsequent research provided a more tempered view.

In a 2000 paper, Mark Hirschey concluded that the Dogs of the Dow strategy provided no abnormal returns between 1961 and 1998 after accounting for trading costs and taxes.

Before the index was discontinued, more recent data from S&P Dow Jones Indices showed the Dow Dogs returned 11.6% annualized from 2012 to 2022, slightly trailing the 12.2% return for the Dow Jones Industrial Average and the S&P 500's 12.5% annual gain.

Overall, research has not produced a clear consensus on the merits of the Dow Dogs strategy.

And today, honing in on the highest dividend yields may not be as reliable of a value indicator given the limited number of stocks in the DJIA and the many lower-yielding stocks that have joined the popular benchmark.
 
For example, at the end of 2024 only 16 of the 30 Dow stocks had a dividend yield above 2%. A high dividend yield may not be abnormal for many Dow Dogs.

Holding a stock for just one year carries risk as well. Anything can happen in 12 months. Changes in a stock's valuation multiple are unpredictable and can temporarily overpower the trajectory of a company's underlying fundamentals, which matter more for long-term returns.

Let's take a closer look at each Dow Dog's appeal.

We reviewed every Dow Dog to help investors separate value from potential value traps.

Investors interested in income ideas may also want to review our favorite high dividend stocks.

Sector: Communications – Wireless and Internet Services
Dividend Yield: 6.8% (as of 12/31/23)
Dividend Safety Score: Safe
Uninterrupted Dividend Streak: 41 years

Verizon's (VZ), the top-yielding Dow Dog, was formed in 2000 when two telecom giants merged, but its predecessors' roots trace back to the late 19th century when Alexander Graham Bell patented the telephone.

Verizon is now the largest wireless company in the United States. The firm generates nearly all of its profits by offering wireless services like monthly phone plans, data packages, and device sales to over 100 million subscribers. Verizon also offers internet through its fiber-optic network and provides various services for businesses.

Sector: Energy – Integrated Oil and Gas

Dividend Yield: 4.5% (as of 12/31/23)
Dividend Safety Score: Very Safe

Uninterrupted Dividend Streak: 113 years

Chevron (CVX) was born from the 1879 discovery of an oilfield near Los Angeles that yielded 25 barrels of oil per day. Today, Chevron is one of the world's largest oil companies, producing over 1.5 million oil-equivalent barrels daily. 

The oil major's profits come from upstream activities like exploring for and producing oil, gas, and liquefied natural gas, as well as downstream operations, including refineries that use crude oil to make petroleum products such as gasoline and petrochemicals and a network of gas stations.

Sector: Healthcare – Biotechnology

Dividend Yield: 3.7% (as of 12/31/23)
Dividend Safety Score: Safe

Uninterrupted Dividend Streak: 14 years

Venture capitalists formed Amgen (AMGN) in 1980. The firm develops and manufactures medicines for serious diseases. Specializing in biologics—drugs made from living cells—Amgen focuses on treatments for conditions like cancer, osteoporosis, and autoimmune diseases. 

Notable products include Enbrel for rheumatoid arthritis, Prolia for bone health, and Repatha for cholesterol management. Unlike larger rivals Merck and Pfizer, which mostly make drugs created through chemical reactions in a lab, Amgen's biologics are much more complex due to natural molecular variations and can't be copied as easily.

Sector: Healthcare – Pharmaceuticals

Dividend Yield: 3.4% (as of 12/31/23)
Dividend Safety Score: Very Safe

Uninterrupted Dividend Streak: 109 years

Johnson & Johnson (JNJ), founded in 1886, is a dividend aristocrat and a global leader in pharmaceuticals and medical devices. The company develops prescription medications for various therapeutic areas, including oncology, immunology, and neuroscience. Its medical devices portfolio encompasses products for surgery, orthopedics, and vision care.

Sector: Healthcare – Pharmaceuticals

Dividend Yield: 3.3% (as of 12/31/23)
Dividend Safety Score: Very Safe

Uninterrupted Dividend Streak: 54 years

Founded in 1891, Merck (MRK) is a global healthcare firm. The company primarily generates revenue through through prescription medicines and vaccines for human health, focusing on areas like cancer, heart disease, and diabetes. Notable brands include Keytruda for cancer, Januvia to treat Type 2 diabetes, and Gardasil for preventing certain infections. In addition, Merck provides animal health solutions through veterinary drugs and vaccines.

Sector: Consumer Staples – Soft Drinks and Non-Alcoholic Beverages

Dividend Yield: 3.1% (as of 12/31/23)
Dividend Safety Score: Safe

Uninterrupted Dividend Streak: 105 years

Coca-Cola (KO), founded in 1892, is a leading global beverage corporation. It offers a diverse portfolio of over 200 drink brands, including Coca-Cola, Diet Coke, Sprite, Fanta, Dasani, and Minute Maid, available in more than 200 countries. The firm operates on a franchised distribution system, producing syrup concentrate sold to licensed bottlers worldwide, who then manufacture, package, and distribute the finished beverages.

Sector: Information Technology – IT Consulting and Other Services

Dividend Yield: 3.0% (as of 12/31/23)
Dividend Safety Score: Safe

Uninterrupted Dividend Streak: 30 years

International Business Machines (IBM), founded in 1911, is a global technology company operating in over 175 countries. It provides hybrid cloud solutions, artificial intelligence (AI), consulting, and enterprise software focused on areas like cybersecurity, automation, and data analytics. With its hybrid cloud platform, anchored by Red Hat, IBM helps businesses streamline operations, reduce costs, and leverage data to gain a competitive edge across various industries.

Sector: Information Technology – Communications Equipment

Dividend Yield: 2.7% (as of 12/31/23)
Dividend Safety Score: Very Safe

Uninterrupted Dividend Streak: 13 years

Cisco (CSCO) has grown to become one of the most important technology companies in the world since its founding at Stanford University in 1984.

The firm's core products – switches and routers – connect computing devices to networks and computer networks with each other. These infrastructure platforms help direct the internet's traffic and move data to the proper devices.

The rest of the firm's revenue is spread across several faster-growing divisions, including applications, security, and services, which consist of technical support, subscriptions, and software related to Cisco's various segments.

Sector: Consumer Discretionary – Restaurants

Dividend Yield: 2.4% (as of 12/31/23)
Dividend Safety Score: Safe

Uninterrupted Dividend Streak: 48 years

Founded in 1940, McDonald's (MCD) franchises restaurants worldwide, earning most of its income from franchise fees and royalties. This model insulates it from short-term shifts in restaurant profitability. McDonald's targets value-conscious customers seeking quick, affordable meals, offering menu staples like burgers, chicken sandwiches, fries, breakfast items, and beverages.

Sector: Consumer Staples – Household Products

Dividend Yield: 2.4% (as of 12/31/23)
Dividend Safety Score: Very Safe

Uninterrupted Dividend Streak: 134 years

With roots tracing back to 1837, Procter & Gamble (PG) is among the oldest Dogs of the Dow. The company is one of the world's largest manufacturers of laundry detergents, baby wipes, diapers, paper towels, cleaning products, shampoos, deodorants, toothpaste, and other consumer goods. Some of the firm's top brands include Luvs, Pampers, Tampax, Charmin, Downy, Tide, Cascade, Dawn, Febreze, Head & Shoulders, Old Spice, Pantene, Gillette, Braun, Crest, and Oral-B. Around half of P&G's sales occur outside of North America.

We are not aware of an ETF that exactly replicates the Dogs of the Dow strategy. However, the ALPS Sector Dividend Dogs ETF (SDOG) takes a similar approach.

This fund takes the five highest-yielding stocks from each of the S&P 500's 10 sectors, resulting in 50 equal-weighted holdings. Stocks are selected each December and rebalanced quarterly.

With over $1 billion in net assets and around a 10% annualized return since inception in 2012, SDOG appears to be an ETF with staying power for investors who want a hands-off approach to applying the Dogs of the Dow theory.

Similar ETFs are available for emerging markets, international developed markets, and REITs.

In theory, the Dogs of the Dow strategy sounds appealing – buying beaten-down stocks of quality, time-tested businesses.

But in reality, the limited number of holdings in the Dow Jones Industrial Average benchmark makes the top 10 yield list less targeted.

Instead, our preference is to build a more diversified dividend portfolio that pulls from a broader universe of high-quality stocks.

Comparing a stock's dividend yield to its normal trading range can also help identified undervalued businesses, an approach we follow with our Timeliness valuation metric (and the yield charts shown above).

By the way, many of the people interested in Dow Dogs are retirees looking to generate reliable income from dividend-paying stocks.

If that sounds like you, you might like to try our online product, which lets you track your portfolio’s income, dividend safety, and more.

You can learn more about our suite of portfolio tools and research for dividend investors by clicking here.