10 Best Dow Dividend Stocks to Double Your Income

Published March 3, 2022 at 8:55 am EST Updated August 19, 2026 at 7:39 am EDT

In this article we will be taking a look at the 10 best Dow dividend stocks to double your income.

The Dow Jones Industrial Average, also known as the Dow Jones or the Dow, is a stock market index comprising of 30 companies listed on American stock exchanges. These are mostly renowned and prominent companies, such as McDonald’s Corporation (NYSE:MCD), Verizon Communications (NYSE:VZ), and Chevron Corporation (NYSE:CVX). The index’s weighting method is the price-weighted measurement, and its companies are primarily listed on the New York Stock Exchange and NASDAQ.

The Dow Jones Industrial Average gained about 18.7% in 2021, according to Forbes. The Dow was not the only benefactor for the year, as was seen by the Nasdaq Composite’s gain of 21.4%.

Some of the main contributors to the Dow’s positive performance in February were Johnson & Johnson (NYSE:JNJ) and 3M Company (NYSE:MMM).

Both of these top contributors have been added to our list below, also being two popular dividend stock picks primarily for income investors. Johnson & Johnson has had a record of dividend growth for the past 59 years in a row, alongside a generous payout ratio of 42.8%. Similarly, the 3M Company has also raised its dividend continuously for the past 63 years, holding a payout ratio of 58.5% as well. As such, both stocks are among the best options for safe and lucrative dividend income, to the interest of hedge funds and other investors today.

Our Methodology:

Using Insider Monkey’s fourth quarter of 2021 hedge fund data, we have selected dividend stocks from the Dow Jones index that are popular among the 924 hedge funds tracked. We also took into account analyst ratings to pick stocks analysts are optimistic about in light of recent market trends. The stocks are ranked on the basis of dividend yield, from the lowest to the highest dividend yield, while we have also mentioned their price gains in the past six months and year to date as of late February 2022.

Photo by Dan Dennis on Unsplash

Best Dow Dividend Stocks to Double Your Income

10. Walmart Inc. (NYSE:WMT)

Number of Hedge Fund Holders: 63

Dividend Yield: 1.6%

Walmart Inc. (NYSE:WMT) is a retail giant operating in the US and internationally. It works with supercenters, supermarkets, warehouse clubs, and other stores. The company is among the largest hypermarkets and supercenters operators in the world.

Morgan Stanley’s Simeon Gutman holds an Overweight rating on Walmart Inc. shares as of this February.

The company’s EPS in the fiscal fourth quarter of 2022 was $1.53, beating estimates by $0.03. Walmart Inc. also had revenue of $151.5 billion, beating the previous quarter’s $139.2 billion revenue.

Out of 924 hedge funds, 63 hedge funds were long Walmart Inc. in the fourth quarter of 2021. Their total stake value was $7.1 billion.

Walmart Inc., like McDonald’s Corporation, Verizon Communications, and Chevron Corporation is among the top stock picks for hedge funds in 2022.

9. McDonald’s Corporation (NYSE:MCD)

Number of Hedge Fund Holders: 57

Dividend Yield: 2.2%

McDonald’s Corporation is a large restaurant franchise owner and operator. The company is among the most renowned food chain names in the world. It has raised its dividend for the past 45 years.

In January, Barclays analyst Jeffrey Bernstein reiterated an Overweight rating on McDonald’s Corporation shares.

Baird analyst David Tarantino also holds an Outperform rating on the company’s shares as of this January, while noting that McDonald’s Corporation is likely to yield a good risk-adjusted total return over the next 12+ months.

Renaissance Technologies is the largest stakeholder in McDonald’s Corporation as of the fourth quarter of 2021 when a total of 57 hedge funds were long the stock.

8. Caterpillar Inc. (NYSE:CAT)

Number of Hedge Fund Holders: 53

Dividend Yield: 2.4%

Caterpillar Inc. (NYSE:CAT) is an industrials company, selling construction and mining equipment, diesel and natural gas engines, and industrial gas turbines. The company offers a highly diversified range of products and services, such as even operating and finance leases and wholesale financing plans.

Tigress Financial analyst Ivan Feinseth holds a Buy rating on shares of Caterpillar Inc. as of this February.

The company’s fiscal fourth quarter of 2021 results show an EPS of $2.69 and revenue of $13.8 billion. Both beat estimates by $0.43 and $558.9 million, respectively.

Our hedge fund data for the fourth quarter of 2021 shows 53 hedge funds holding stakes in Caterpillar Inc., compared to 46 hedge funds in the previous quarter.

McDonald’s Corporation, Verizon Communications, and Chevron Corporation are some other big dividend stocks to keep an eye on this year, alongside Caterpillar Inc..

7. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 83

Dividend Yield: 2.6%

Johnson & Johnson is a health care and pharmaceuticals company. It offers baby care products, oral care products, skin health and beauty products, under the Johnson’s, Aveeno, Listerine, and Clean & Clear brands. Having grown its dividend without rest for the past 59 years, the company is among the best Dow dividend stocks to increase your income.

Raymond James’ Jayson Bedford holds an Outperform rating on Johnson & Johnson shares as of this January.

Johnson & Johnson had an EPS of $2.13 and revenue of $24.8 billion in the fiscal fourth quarter of 2021. The EPS beat estimates by $0.01, while the revenue beat the previous quarter’s revenue of $23.3 billion.

Johnson & Johnson had 83 hedge funds holding stakes in it in the fourth quarter of 2021, of which Fundsmith LLP was the largest stakeholder. The fund held 7,219,198 shares in the company, worth over $1.2 billion, while the total stake value for all the hedge funds was $7.4 billion.

6. The Coca-Cola Company (NYSE:KO)

Number of Hedge Fund Holders: 70

Dividend Yield: 2.8%

The Coca-Cola Company (NYSE:KO) is among the most famous beverage companies across the globe. The company provides a wide range of drinks to its consumers, including soft drinks such as Diet Coke and Fanta, and even tea and coffee. Their quarterly dividend has increased for the past 59 years, making it one of the safest dividend stocks.

The Coca-Cola Company received an Outperform rating from Evercore ISI’s analyst Robert Ottenstein just this February.

The Coca-Cola Company’s (NYSE:KO) earnings history shows an EPS of $0.45 and revenue of $9.5 billion in the fiscal fourth quarter of 2021. The EPS beat estimates by $0.04, while the revenue also beat estimates by $579.3 million.

For the fourth quarter of 2021, 70 hedge funds were long The Coca-Cola Company, with a total stake value of over $28.6 billion. Out of these hedge funds, Warren Buffett’s Berkshire Hathaway was the largest stakeholder in the stock, holding 400,000,000 shares worth about $23.7 billion.

Like McDonald’s Corporation, Verizon Communications, and Chevron Corporation, The Coca-Cola Company is among the most popular stock picks for hedge funds in 2022.

5. Merck & Co., Inc. (NYSE:MRK)

Number of Hedge Fund Holders: 80

Dividend Yield: 3.6%

Merck & Co., Inc. is another healthcare company on our list of the best Dow dividend stocks to double your income. The company offers human and animal health pharmaceutical products and has grown its dividend for the past 12 years, making it a safe dividend stock pick.

JPMorgan analyst Chris Schott holds an Overweight rating on shares of Merck & Co., Inc. as of this January.

Merck & Co., Inc.’s (NYSE:MRK) earnings history shows an EPS of $1.80, beating estimates by $0.3, in the fiscal fourth quarter of 2021. Its revenue was $13.5 billion, also beating estimates by $308.8 million.

In the fourth quarter of 2021, 80 hedge funds were long Merck & Co., Inc.. Their total stake value was $3.8 billion.

4. 3M Company (NYSE:MMM)

Number of Hedge Fund Holders: 41

Dividend Yield: 3.9%

3M Company is a diversified technology company operating through its Safety and Industrial; Transportation and Electronics; Health Care; and Consumer segments. The company offers a diverse range of products, from industrial abrasives to filtration and purification systems.

Wells Fargo holds an Equal Weight rating on shares of 3M Company as of this February.

The company’s EPS in the fiscal fourth quarter of 2021 was $2.31, beating estimates by $0.3. The revenue was $8.6 billion, also beating estimates by $31.6 million.

Our fourth quarter 2021 hedge fund data shows 41 hedge funds out of 924 hedge funds holding stakes in 3M Company. Their total stake value was $1.6 billion. In the previous quarter, 46 hedge funds held stakes in the company worth $1.6 billion then as well.

3. Chevron Corporation (NYSE:CVX)

Number of Hedge Fund Holders: 53

Dividend Yield: 4.1%

Chevron Corporation is an energy company operating through its Upstream and Downstream segments. The company explores, develops, produces, and transports crude oil and natural gas, alongside providing other related services.

Cowen’s Jason Gabelman holds an Outperform rating on Chevron Corporation shares as of this February.

The company had an EPS of $2.6 in the fiscal fourth quarter of 2021, and revenue of $48.1 billion. The revenue beat estimates by $2.8 billion.

Out of 924 hedge funds in the fourth quarter of 2021, 53 hedge funds were long Chevron Corporation, with a total stake value of $6.5 billion.

2. Verizon Communications (NYSE:VZ)

Number of Hedge Fund Holders: 63

Dividend Yield: 4.7%

Verizon Communications is a communication services company offering a range of integrated telecommunication services to consumers worldwide.

Deutsche Bank analyst Bryan Kraft reiterated a Hold rating on Verizon Communications shares just this January.

The company’s EPS for the fiscal fourth quarter of 2021 was $1.32, beating estimates by $0.03. Its revenue was $34.1 billion, beating the previous quarter’s revenue of $32.9 billion.

Our hedge fund data shows 63 hedge funds long Verizon Communications in the fourth quarter of 2021. Their total stake value was $10.9 billion.

Weitz Investment Management, an investment management firm, mentioned Verizon Communications in its fourth-quarter 2021 investor letter. Here’s what they said:

“After several quarters of pandemic-induced outsized growth, new broadband connection growth has slowed for U.S. cable operators. This slower growth has coincided with a renewed push by competitors like Verizon and AT&T to offer high-speed data (either via wireless connects or by building new fiber-optic networks).”

1. International Business Machines Corporation (NYSE:IBM)

Number of Hedge Fund Holders: 44

Dividend Yield: 5.3%

International Business Machines Corporation (NYSE:IBM) is an information technology company operating in the IT consulting and other services industry. The company offers integrated solutions and services through its Cloud & Cognitive Software, Global Business Services, Global Technology Services, Systems, and Global Financing segments. It has raised its dividend for the past 22 years.

Evercore ISI holds an In Line rating on International Business Machines Corporation as of this January.

The earnings history for International Business Machines Corporation shows an EPS of $3.4, beating estimates by $0.06, in the fiscal fourth quarter of 2021. Its revenue was $16.7 billion, also beating estimates by $730.5 million.

International Business Machines Corporation had 44 hedge funds holding stakes in it in the fourth quarter of 2021, compared to 41 hedge funds in the previous quarter.

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