10 Best Dividend Stocks According to Jim Cramer

1. Dow Inc. (NYSE:DOW)

Dividend Yield: 9.29%

Dow Inc. (NYSE:DOW) holds a place among our list of 10 best dividend stocks according to Jim Cramer. On June 11, 2025, Citi reaffirmed its Hold rating on the stock but has adjusted the price target from $29 to $30.

Headquartered in Michigan, Dow Inc. (NYSE:DOW) is one of the world’s leading manufacturers and suppliers of chemicals, plastics, and sealants. The company’s products and services are used in multiple sectors, including packaging, infrastructure, mobility, and consumer care. With manufacturing sites in 31 countries, the company is a heavy investor in R&D with a special focus on areas like energy efficiency, sustainable packaging, and mobility.

Citi’s Hold rating and the price target adjustment on the stock arrive after a Canadian court order ordered Nova Chemicals to pay Dow Inc. (NYSE:DOW) an additional amount of $1.2 billion in damages. The judgment, arrived on June 10, was in relation to losses incurred by the company from a jointly owned ethylene asset in Joffre, Alberta, Canada. The judgment translated positively among the market experts, particularly after a fall in stock price on June 2, 2025, following the sale of 50% interest in DowAksa Advanced Composites Holdings BV (DowAksa) to Aksa Akrilik Kimya Sanayii A.Ş.

Dow Inc. (NYSE:DOW) offers a dividend yield of 9.29%, thereby attracting investors seeking high and consistent income. However, the payout ratio of over 700% signals caution when investing in the stock.

While we acknowledge the potential of DOW to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DOW and that has 100x upside potential, check out our report about this cheapest AI stock.

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