The 2 Best Dow Dividend Stocks Today

The classic “Dogs of the Dow” strategy advises buying the 10 highest-yielding Dow Jones Industrial Average stocks, then holding onto them for a year. The idea is that higher yields are a signal of a beaten-up share price – and that because we’re buying a stable blue-chip with a stable customer base, investors will eventually bid the stock back up when the business cycle turns up again. But we can further improve on this effective yet somewhat “dumb” strategy with a bit of second-level analysis. After all, some of these companies have business models that are actually aging in dog years! And they should be avoided.

Exxon Mobil Corporation (XOM), Dividend Yield: 3.6%, is emerging from what easily has been one of the most trying points in the company’s history, the roots of which stretch all the way back to 1870. Boeing Co (BA), Dividend Yield: 3.5%, just boosted its dividend by 30% to $1.42 per share – more than double its quarterly payout from 2013! And Boeing’s generosity to shareholders didn’t stop there. The company also upgraded its old stock repurchase program by implementing a new $14 billion buyback plan. Future business prospects are looking good. Boeing said it expects 2017 commercial aircraft deliveries to reach between 760 and 765, up from last year’s 748.

Source: InvestorPlace

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