Verizon and Chevron Lead Dow High-Yielders With Dividends Above 4.5%
Verizon Communications (VZ) starts 2026 as the highest-yielding stock in the Dow Jones Industrial Average, offering a substantial 6.8% dividend yield. The telecommunications giant saw its stock price increase by only 1.9% in 2025, positioning it as a prime candidate for investors seeking income over aggressive growth. Following Verizon is energy major Chevron (CVX), which provides a 4.5% yield after its stock gained 5.2% in the previous year. Both companies represent the traditional value proposition of the 'Dogs of the Dow' strategy: established blue-chips with significant dividend payouts.
UnitedHealth's 34.7% Drop Highlights Value Plays
The 2026 list underscores the core principle of the 'Dogs of the Dow' strategy by including several companies that significantly underperformed in 2025. UnitedHealth Group (UNH) stands out with a 34.7% stock price decline last year, yet it offers a 2.7% yield. Similarly, Nike (NKE) and Procter & Gamble (PG) saw their stocks fall by 15.8% and 14.5%, respectively, while yielding 2.6% and 3.0%. These companies represent potential turnaround plays for investors betting that last year's market sentiment will reverse.
In contrast, the high-yield list also includes strong 2025 performers, complicating a simple value narrative. Johnson & Johnson (JNJ) stock appreciated 43.1% in 2025 and still offers a 2.5% yield, while Amgen (AMGN) grew 25.6% with a 3.1% yield. The inclusion of several Berkshire Hathaway holdings, including Chevron, Coca-Cola (KO), and UnitedHealth, lends further credibility to the quality of the companies on the list.
New Additions Push Dow's Average Yield Down to 1.9%
The average dividend yield for the entire Dow Jones Industrial Average has fallen to approximately 1.9% to begin 2026, down from 2.0% a year prior. This dilution is a direct result of changes to the index's composition that favor growth-oriented technology companies over traditional dividend payers. The additions of Amazon.com (AMZN) in February 2024 and NVIDIA (NVDA) in November 2024 have particularly skewed the average, as Amazon pays no dividend and Nvidia's yield is a scant 0.02%. Currently, only Amazon and Boeing (BA) are the two non-dividend-paying components in the 30-stock index, reflecting a broader market shift toward growth.
