Should you buy 3 best paid dividends Dow Jones?

• The Dow Jones industry is consisting of several US companies resistance.

• But just being part of Dow does not mean that it is a great dividend payment.

• As always, each possible investment should be made on a case -by -case basis.

• 10 shares we like more than Chevron ›

The assumption has a sufficient basic meaning – the dividend income is good, making the higher dividend income better. Therefore, if you want a dividend income, pay attention to the purchase of higher yields. Still, investors in veterans know that things are not that easy. There is always more in the narrative. For example, will the dividend discussed in fact be paid in the future, or can the main shares itself lose value? What to do if you limit your chances to Blue-Chip shares that make up Dow Jones Industry Average (Djindices: ^dji)?

Although no one sees the future, these are reasonable questions.

There is more than just a harvest at risk to be overlaps. Dividend yields often increase due to a decline in shares, such as to reduce dividends. Or perhaps that payment of the certificate does not grow over time and is likely to grow fast. If you hold these stocks long enough, you will eventually lose the inflation basis.

However, if your priority earns immediate investment income, higher yields are at least the right starting point, if you do all the other necessary decent checks.

It can be argued that inclusion in Dow is proper diligence. Standard and poor The Dow’s 30 shares Dow’s Holdings, based on not only qualitative factors, ultimately to represent the best American business landscape. This is not a crazy idea. Although these 30 companies are changing regularly when the business world is developing, few deny that the Dow Jones industry is a pretty good image of American ingenuity and resistance.

It’s not Pretty However, what makes the dividend investors worried about. While they can certainly assess resistance, their main concern now earns income and then increases income.

Enter Verizon Communications (NYSE: VZ)Is it Chevron (NYSE: CVX)and Merck (NYSE: MRK)Currently, three top -level ingredients with a 12 -month dividend yield of 6.3%, 4.9%and 4%respectively. Are any of these shares purchased for income investors simply because they are names, or are their yields higher than average simply because their stocks are fighting for a horizon?

In that case they all three buy – if Your main goal is income. However, being DOW stock has little to do with that decision. As always, these bull calls are called on a case -by -case basis.

Take Verizon as an example. Although there is no reason to expect a highly saturated and fully mature mobile telecommunications business from the country’s growth, there are all the reason to believe that this company will be able to continue their profitable income, which are fully funds continued with dividend benefits.

Better or worse, Americans are basically dependent on their smartphones. A study by Harmony Healthcare shows that the average US resident spends more than five hours every day looking at their portable connection to the digital world. Separate data from the review.org states that Americans check their phone – not limited to 200 times a day, and nearly four out of five people report that they feel troubled about the idea of ​​leaving their homes without a mobile device.

Connect the points. Although we can eventually take on a little healthier habits of smartphones, Verizon’s main business is almost certainly here. The increase in prices should mean that the growth of this shares is constantly growing.

The future of Chevron is not such a solid rock, but it will be fruitful enough to make it solid to buy so far.

Yes, renewable energy sources will eventually send fossil fuel. Still, do not hold your breath. Goldman Sachs He says the world will not reach the so-called “demand for the highest oil”-it is a point where global oil consumption begins to constantly recession-iki 2035. Even for many years, we will still need hundreds of millions of barrels every day. While this is a slightly independent perspective, the Chevron competitor Exxonmobil Predicts that 2050 The world will need as much green oil as it will probably need in 2030.

Like Verizon, Chevron uses enough and inexpensive products to maintain its dividends for the future.

O Merck? It is also not a great time growth machine, even if its well-tested anti-cancer drug Keytruda still has to reach the highest annual sales-$ 34 billion, which Globalgaldata and other analysts expect to see by 2028. (When the miracle medicine begins to lose the main protection of patents). This requires a replacement of the oncological drug, which currently produces about half of the drug manufacturer’s income, and needs to be replaced. Concerns about the wind of this beer are the main reason for the Merck campaign from 2024. The beginning of the beginning.

However, too many investors do not notice that the development of Merck’s development is actually quite promising. The company reports that by 2030 It could win as many as seven swords for a sword, and after a few years the total annual income potential is $ 15 billion. Everything said, the pharmaceutical giant believes that there are currently 20 possible blocks that could earn a $ 50 billion annual income for a decade.

Even with a bit of advertising Merck, promises to its research and development pipeline does not reflect its current price.

If you are looking for reliable dividend revenue, which will also grow indefinitely, the three best paid dividend reserves in the Dow Jones industry will be beautiful. And of course, the Blue Chip arrow includes undeniable these names.

Just don’t read too much of this benefit on this. These are strong dividend stocks mainly because their main companies are built in such a way that they can last and may flourish in almost any environment. Of course, you can find similarly solid names outside Dow.

Consider this before buying the Chevron stock:

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James Brumley has no position in any of the above shares. Motley fools hold positions and recommend Chevron, Goldman Sachs Group, Merck and S&P Global. The Motley fool recommends Verizon Communications. The Motley fool has a disclosure policy.

Should you buy 3 best paid dividends Dow Jones? initially released by The Motley Fool