10 Dow Dividend Stocks Analysts Love the Most

 

With uncertainty running high amid a return of volatility, the case for the best Dow dividend stocks is as strong as ever.

 


 

If the past month of market action underscores anything, it's that big, blue-chip dividend stocks never go out of style. And that's particularly true for the bluest of blue-chip equity-income vehicles – the top Dow dividend stocks.

 

The Dow Jones Industrial Average, that elite bastion of 30 industry leading companies, is a haven for reliable dividend payers. Only one of its components – Salesforce.com (CRM) – doesn't pay a dividend at all.

 

And although long-time dividend machines Boeing (BA) and Walt Disney (DIS) have temporarily suspended their payouts in response to the COVID-19 crisis, the Dow remains a fountain of reliable and growing dividends. Indeed, a number of Dow dividend stocks are members of the S&P 500 Dividend Aristocrats, a list of companies that have increased their payouts annually for at least 25 consecutive years.

 

The Dow's dividend-heavy character helped it hold up better than the benchmark S&P 500 since the latter peaked out at a record close on Sept. 2. With uncertainty running high amid a return of volatility, the case for Dow dividend stocks is as strong as ever.

 

"Dividend strategies have gained a foothold with market participants seeking potential outperformance and attractive yields, especially in the even lower-rate environment we've seen since early 2020 as the world deals with the economic fallout from COVID-19," notes Tianyin Cheng, senior director of Strategy Indices at S&P Dow Jones Indices. "Stocks with a history of dividend growth could present a compelling investment opportunity in an uncertain environment."

 

 

Given that reality, we screened the blue-chip average for analysts' highest-rated Dow dividend stocks.

 

Here's how the process works: S&P Global Market Intelligence surveys analysts' stock ratings and scores them on a five-point scale, where 1.0 equals Strong Buy and 5.0 means Strong Sell. Any score of 2.5 or lower means that analysts, on average, rate the stock a Buy. The closer the score gets to 1.0, the stronger the Buy call.

 

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