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Top Dividend Stocks to Watch in 2023: The Dogs of the Dow

3 min read


The Dogs of the Dow strategy, an investment approach that has gained popularity over the years, focuses on dividend yield and involves selecting dividend-paying stocks from the Dow Jones Industrial Average. In this article, we will explore five dividend stocks that merit your attention as the Dogs of the Dow for 2023.

  1. IBM (IBM):IBM, a renowned technology company, has made its way onto the Dogs of the Dow list for 2023. The company has been working diligently to reinvent itself and adapt to changing industry dynamics. With a dividend yield that’s historically higher than the market average, IBM offers an attractive income opportunity for investors.
  2. Verizon Communications (VZ):Verizon Communications, one of the largest telecommunications companies in the United States, boasts a solid track record of dividend payments. As the demand for connectivity and 5G technology continues to grow, Verizon’s services remain in high demand. Its dividend yield adds an appealing component to its investment proposition.
  3. Chevron Corporation (CVX):The energy sector has seen its share of ups and downs in recent years, but Chevron remains a stalwart in the industry. With the resurgence in oil prices and the focus on renewable energy, Chevron’s robust dividend yield becomes a highlight for income-seeking investors.
  4. Walgreens Boots Alliance (WBA):Walgreens, a pharmacy and health retail giant, offers a unique blend of consumer staples and healthcare services. It has a long history of delivering consistent dividend payments, making it an attractive choice for income investors. The company’s dividend yield makes it a compelling option to watch.
  5. Dow Inc. (DOW):Dow Inc., a diversified chemical company, is another stock to watch in 2023. As the world grapples with supply chain disruptions and the need for essential chemicals, Dow remains a prominent player in the industry. Its dividend yield has earned it a place among the Dogs of the Dow.

Why the Dogs of the Dow Strategy:

Dividend Yield: The Dogs of the Dow strategy targets stocks with attractive dividend yields, providing investors with a source of income.

Blue-Chip Stocks: The strategy primarily focuses on blue-chip stocks from the Dow Jones Industrial Average, which tend to be established and stable companies.

Contrarian Approach: By selecting stocks with higher yields that may have temporarily fallen out of favor, the strategy takes a contrarian approach, potentially leading to value opportunities.

Final Thoughts: While the Dogs of the Dow strategy offers a systematic way to approach dividend investing, it’s crucial for investors to conduct their research and consider their individual financial goals and risk tolerance. These five dividend stocks—IBM, Verizon Communications, Chevron Corporation, Walgreens Boots Alliance, and Dow Inc.—stand out as potential candidates to watch in 2023. However, the investment landscape can change, so staying informed and diversifying one’s portfolio remain essential aspects of a sound investment strategy.