Updated on August 21st, 2025 by Bob Ciura
The “Dogs of the Dow” investing strategy is a very simple way for investors to achieve diversification and income in their portfolios while remaining in the sphere of more conservative blue chip stocks.
The strategy consists of investing in the 10 highest-yielding stocks in the Dow Jones Industrial Average, an index of 30 U.S. stocks.
High dividend stocks are stocks with a dividend yield well in excess of the market average dividend yield of ~1.3%.
With that in mind, we have created a free list of over 200 high dividend stocks with dividend yields above 5%.
You can download your copy of the high dividend stocks list below:
The “Dogs of the Dow” strategy produces above-average income and concentrates on stocks that typically trade at lower valuations relative to the rest of the DJIA.
Given that the DJIA represents some of the largest companies in the world, its “dogs” are typically companies with strong track records that have hit temporary problems.
This is a great and simple strategy for value investors looking to purchase good businesses that are currently out of favor. To implement this strategy, take the amount of money you have to invest and then divide it equally among the 10 highest-yielding stocks in the DJIA.
Hold these stocks for a whole year and then at the end of 12 months, look at the 30 Dow stocks again and resort them by dividend yield from highest to lowest.
Rebalance and reallocate your capital accordingly and repeat the process. In addition to the simplicity and focus on quality, value, and income that this strategy generates, it also improves discipline by preventing excessive emotion-driven trading.
It also encourages investors to reap the tax benefits from holding positions for at least one year before selling, thereby being taxed at the long-term capital gains tax rate instead of the short-term rate.
The 2025 Dogs of the Dow
The list of the 2025 Dogs of the Dow is below, along with the current dividend yield of the top-ten yielding DJIA stocks.
Click on a company’s name to jump directly to analysis on that company.
Dog of the Dow #10: Cisco Systems (CSCO)
Cisco Systems is the global leader in high performance computer networking systems. The company’s routers and switches allow networks around the world to connect to each other through the internet. Cisco also offers data center, cloud, and security products.
On May 14th, 2025, Cisco reported results for the third quarter of fiscal year 2025, which ended April 26th, 2025. For the quarter, revenue grew 11.4% to $14.2 billion, which was $90 million more than expected. Adjusted earnings-per-share of $0.96 compared favorably to adjusted earnings-per-share of $0.88 in the prior year and was $0.04 above estimates.
Product orders improved 20% for the period. Excluding the addition of Splunk, product orders were higher by 9%. Networking grew 8%, Security surged 54%, Collaboration was up 4%, and Observability improved 24%. By region, the Americas grew 14%, Europe/Middle East/Africa increased 8%, and Asia-Pacific/Japan/China was higher by 9%.
Click here to download our most recent Sure Analysis report on Cisco Systems (CSCO) (preview of page 1 of 3 shown below):
Dog of the Dow #9: Procter & Gamble (PG)
Procter & Gamble is a consumer products giant that sells its products in over 180 countries. Notable brands include Pampers, Luvs, Tide, Gain, Bounty, Charmin, Puffs, Gillette, Head & Shoulders, Old Spice, Dawn, Febreze, Swiffer, Crest, Oral-B, Scope, Olay and many more.
Procter & Gamble has paid a dividend for 134 years and has grown its dividend for 69 consecutive years – one of the longest active streaks of any company.
On April 8th, 2025, Procter & Gamble raised its dividend by 5%, from $1.0065 per quarter to $1.0568.
In late July, Procter & Gamble reported (7/29/25) results for the fourth quarter of fiscal 2025 (its fiscal year ends June 30th). Its sales and organic sales grew 2% over last year’s quarter, thanks to higher prices. Core earnings-per-share grew 6%, from $1.40 to $1.48, beating the analysts’ consensus by $0.06.
The firm sales amid sustained price hikes are a testament to the strength of the brands of Procter & Gamble. However, we note a remarkable deceleration in price hikes in the last five quarters. This indicates that the company cannot keep raising its prices aggressively anymore.
Due to soft consumer spending amid increased economic uncertainty, Procter & Gamble provided modest guidance for fiscal 2026. It expects 0%-4% growth of organic sales and 0%-4% growth of core earnings-per-share..
Click here to download our most recent Sure Analysis report on PG (preview of page 1 of 3 shown below):
Dog of the Dow #8: UnitedHealth Group (UNH)
UnitedHealth dates back to 1974 when Charter Med was founded by a group of health care professionals looking for ways to expand healthcare options for consumers. It produces about $445 billion in revenue annually.
The company has two major reporting segments: UnitedHealth and Optum. The former provides global healthcare benefits to individuals, employers, and Medicare/Medicaid beneficiaries.
The Optum segment is a services business that seeks to lower healthcare costs and optimize outcomes for its customers.
UnitedHealth posted second quarter earnings on July 29th, 2025, and results were much worse than expected, including a massive guidance cut for the balance of the year. Adjusted earnings-per-share for Q2 came to $4.08, which was 37 cents light of estimates. Revenue was up 13% year-over-year, meeting estimates at $112 billion. Both of the companies primary operating segments posted growth once again.
The company’s consolidated medical care ratio was 89.4%, 430 basis points worse than last year’s Q2. The increase was due to medical cost trends “significantly” exceeding pricing trends. That includes both unit costs and the intensity of services delivered, along with the ongoing effects of Medicare funding reductions.
Days claims payable of 44.5 was down from 45.5 in the first quarter, and fractionally higher from the year-ago period. Operating costs were 12.3%, better than the 13.3% a year ago.
Full-year operating cost ratio is expected to be 12.75%, plus or minus 0.25%. Guidance for this year was cut to $445 billion in revenue, down about 1%. Earnings were slashed from ~$21 in adjusted earnings-per-share to just $16.
Click here to download our most recent Sure Analysis report on UNH (preview of page 1 of 3 shown below):
Dog of the Dow #7: International Business Machines (IBM)
IBM is a global information technology company that provides integrated enterprise solutions for software, hardware, and services. IBM’s focus is running mission critical systems for large, multi-national customers and governments. It typically provides end-to-end solutions. IBM had annual revenue of ~$62.8B in 2024.
IBM reported excellent results for Q2 2025 on July 23rd, 2025. Companywide revenue rose 5% (CC) while diluted adjusted earnings per share rose 15% to $2.80 from $2.43 on a year-over-year basis. Diluted GAAP earnings per share rose 18% to $2.31 in the quarter from $1.96 in the prior year on better margins. A weakening U.S. dollar is helping IBM’s revenue growth with a 1% – 2% tailwind.
Software revenue increased 8% (CC) to $7,387M in comparable quarters due to 14% growth in Hybrid Platform & Solutions, 14% rise for Automation, 7% increase for Data, and a 2% decrease in Transaction Processing. Consulting revenue was flat at $5,314M due to 2% decrease in Strategy and Technology and 2% growth in Intelligent Operations.
The book-to-bill ratio is healthy at 1.14X. Infrastructure revenue climbed 11% (CC) to $4,142M due to 19% increase in Hybrid Infrastructure and a 3% decline in Infrastructure Support. Z systems revenue rose 67% on the new z17.
IBM continued its tuck-in acquisition spree. Completed or announced M&A in 2025 include Hakkoda, HashiCorp, DataStax, and Applications Software Technology. IBM has acquired 35+ companies under the present CEO. IBM forecasts revenue growth of ~5%+ and free cash flow of over $13.5 billion in 2025..
Click here to download our most recent Sure Analysis report on IBM (preview of page 1 of 3 shown below):
Dog of the Dow #6: Johnson & Johnson (JNJ)
Johnson & Johnson is a diversified health care company and a leader in the area of innovative medicines and medical devices Johnson & Johnson was founded in 1886.
On April 15th, 2025, Johnson & Johnson announced that it was increasing its quarterly dividend 4.8% to $1.30, extending the company’s dividend growth streak to 63 consecutive years.
On July 16th, 2025, Johnson & Johnson announced second quarter results for the period ending June 30th, 2025. For the quarter, revenue increased 5.8% to $23.7 billion, which topped estimates by $840 million.
Adjusted earnings-per-share of $2.77 compared to $2.82 in the prior year, but this was $0.09 more than expected.
Revenue for Innovative Medicines grew 4.9% on a reported basis and 3.8% on an operational basis. Infectious Disease decreased 16.8% on a reported basis due to declines across the portfolio.
Oncology increased 24% due to ongoing high demand for Darzalex, which treats multiple myeloma, and continued high demand in several other products.
Johnson & Johnson offered revised guidance for 2025 as well. The company now expects revenue in a range of $92.7 billion to $93.1 billion for the year, up from $91.6 billion to $92.4 billion and $90.9 billion to $91.7 billion previously.
Adjusted earnings-per-share are now projected to be in a range of $10.80 to $10.90.
Click here to download our most recent Sure Analysis report on JNJ (preview of page 1 of 3 shown below):
Dog of the Dow #5: Coca-Cola (KO)
Coca-Cola is the world’s largest beverage company, as it owns or licenses more than 500 unique non–alcoholic brands. Since the company’s founding in 1886, it has spread to more than 200 countries worldwide.
Coca-Cola now has 30 billion-dollar brands in its portfolio, which each generate at least $1 billion in annual sales.
Source: Investor Presentation
Coca-Cola posted second quarter earnings on July 22nd, 2025, and results were somewhat mixed. Adjusted earnings-per-share came to 87 cents, which was three cents ahead of estimates. Revenue was up 0.8% year-over-year to $12.5 billion, missing estimates by $80 million.
Organic revenue was up 5%, including 6% growth in pricing and mix, partially offset by a 1% decline in volumes. The company still expects to deliver 5% to 6% growth in organic revenue this year, unchanged from prior. Net revenue is expected to face a 1% to 2% headwind from currency impacts based on current positioning.
Sparkling soft drinks volume was off 1%, as Coca-Cola fell 1%. Coca-Cola Zero Sugar soared 14% as it grew in all geographic segments. Comparable operating margin expansion during the quarter was up to 37.1% of revenue, driven by organic growth, the timing of marketing investments, and effective cost management. Currency headwinds partially offset some of that..
Click here to download our most recent Sure Analysis report on KO (preview of page 1 of 3 shown below):
Dog of the Dow #4: Amgen Inc. (AMGN)
Amgen is the largest independent biotech company in the world. Amgen discovers, develops, manufactures, and sells medicines that treat serious illnesses.
The company focuses on six therapeutic areas: cardiovascular disease, oncology, bone health, neuroscience, nephrology, and inflammation.
On August 5th, 2025, Amgen announced second-quarter earnings results. Revenue grew 9.4% to $9.2 billion, which was $270 million above estimates. Adjusted earnings-per-share of $6.02 compared favorably to $4.97 in the prior year and was $0.74 ahead of expectations.
For the quarter, growth was primarily a result of a 13% increase in volume, partially offset by a 3% decline in pricing. Sales for Enbrel, which treats rheumatoid arthritis, fell 34% to $604 million. Net selling prices were down 19%, but results were also impacted by a 20% unfavorable change to estimated sales deductions.
Prolia, which treats osteoporosis, decreased 4% to a $1.1 billion due to lower net selling prices. The company did reiterate that biosimilar competition will impact second half results.
Repatha, which is used to control cholesterol, grew 31% to $696 million. Amgen reduced prices for Repatha in 2018 and this has allowed the product to capture market share. Volumes were up 36% during the quarter, helping to offset lower selling prices. Otezla, which is used to treat inflammatory diseases, improved 14% to $618 million due to volume growth and a 12% favorable change to estimated sales deductions.
Amgen stated last quarter that its Phase 2 data for its injectable weight-loss drug candidate, called MariTide, revealed that the product is the first obesity treatment with monthly or less frequent dosing to demonstrate safe and effective weight loss in a Phase 2 study. The product is being tested in multiple Phase 3 studies currently, with some additional data due in the second half of this year.
Amgen updated guidance for 2025 as well. The company now expects adjusted earnings-per-share in a range of $20.20 to $21.30 for the year, up from $20.00 to $21.20 previously. At the midpoint, this would be a 4.6% improvement from the prior year.
Click here to download our most recent Sure Analysis report on Amgen Inc. (AMGN) (preview of page 1 of 3 shown below):
Dog of the Dow #3: Merck & Company (MRK)
Merck & Company is one of the largest healthcare companies in the world. Merck manufactures prescription medicines, vaccines, biologic therapies, and animal health products.
Merck employs 68,000 people around the world and generates annual revenues of more than $63 billion.
Source: Investor Presentation
On July 29th, 2025, Merck announced second quarter results for the period ending June 30th, 2025. For the quarter, revenue decreased 1.8% to $15.8 billion, which was $60 million below estimates.
Adjusted earnings-per-share of $2.13 compared unfavorably to $2.28 the prior year, but topped expectations by $0.10.
Keytruda, which treats cancers such as melanoma that cannot be removed by surgery and non-small cell lung cancer, continues to be the key driver of growth for the company as sales for the drug grew 9% to $8.0 billion during the period.
Animal Health increased 11% to $1.6 billion due to higher demand for Livestock, contributions from an acquisition, and higher pricing.
Click here to download our most recent Sure Analysis report on MRK (preview of page 1 of 3 shown below):
Dog of the Dow #2: Chevron Corporation (CVX)
Chevron is one of the largest oil majors in the world. The company sees the bulk of its earnings from its upstream segment and has a higher crude oil and natural gas production ratio than most of its peers.
Chevron has increased its dividend for 38 consecutive years, placing it on the Dividend Aristocrats list.
In early August, Chevron reported (8/1/25) financial results for the second quarter of 2025. Production grew 4% over the prior year’s quarter, to a new all-time high, thanks to record output in the Permian basin after the acquisition of PDC Energy. However, the company was hurt by lower oil prices and higher depreciation and operating costs.
In addition, refining margins plunged to normal levels after two years of blowout levels. As a result, earnings-per-share fell -31%, from $2.55 to $1.77.
The price of oil has remained below $70 in recent months, as OPEC has begun to restore its output.
Chevron’s output dipped -3% in 2022 but it grew 4% in 2023 and 7% in 2024 thanks to sustained growth in the Permian Basin and the acquisition of PDC Energy. The company has more than doubled the value of its assets in the Permian in the last six years thanks to new discoveries and technological advances.
Click here to download our most recent Sure Analysis report on Chevron Corporation (CVX) (preview of page 1 of 3 shown below):
Dog of the Dow #1: Verizon Communications (VZ)
Verizon Communications was created by a merger between Bell Atlantic Corp and GTE Corp in June 2000. Verizon is one of the largest wireless carriers in the country.
Wireless contributes three-quarters of all revenues, and broadband and cable services account for about a quarter of sales. The company’s network covers ~300 million people and 98% of the U.S.
On July 21st, 2025, Verizon announced second-quarter results. For the quarter, revenue improved 5% to $34.5 billion, which was $790 million more than expected. Adjusted earnings-per-share of
$1.22 compared favorably to $1.15 in the prior year and was $0.03 ahead of estimates.
For the quarter, Verizon had postpaid phone net losses of 51K, which compares to net losses of 109K in the same period of last year. Wireless retail postpaid phone churn rate remains low at 0.90%. Wireless revenue increased 2.2% to $20.9 billion while the Consumer segment grew 2.3% to $17.4 billion.
Consumer wireless postpaid average revenue per account grew 2.3% to $147.50. Broadband totaled 300K net new customers during the period, which marks 12 consecutive quarters of at least 300K net adds.
The total fixed wireless customer base is now more than 5.1 million. Verizon aims to have 8 to 9 million fixed wireless subscribers by 2028. Fios additions totaled 32K. Business revenue
declined 0.3% to $7.3 billion as gains in wireless service revenue were once again more than offset by weakness for wireline revenue.
Wireless retail postpaid net additions were 65K for the period. Free cash flow was $8.8 billion for the first half of the year, up from $8.5 billion in the first half of 2024. .
Click here to download our most recent Sure Analysis report on VZ (preview of page 1 of 3 shown below):
Final Thoughts
Given the descriptions above, the Dogs of the Dow are clearly a very diverse group of blue-chip stocks that each enjoy significant competitive advantages and lengthy histories of paying rising dividends.
As a result, this investing strategy is a great, low-risk way for unsophisticated investors to approach dividend growth investing.
While it may not outperform the broader market every year, it is virtually guaranteed to provide investors with a combination of attractive current yield with steadily rising income over time.
If you are interested in finding high-quality dividend growth stocks and/or other high-yield securities and income securities, the following Sure Dividend resources will be useful:
High-Yield Individual Security Research
Other Sure Dividend Resources
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