Are you looking for high-yield dividend stocks to add to your portfolio? Look no further than the Dow Jones Industrial Average, which contains 30 blue-chip companies, many of which pay dividends. While the Dow yields more than both the S&P 500 and Nasdaq Composite, there are only two stocks in the index that offer a yield of over 5%. One of these stocks is Verizon Communications (NYSE: VZ), with a yield of 6.5%, and the other is commodity chemical company Dow (NYSE: DOW).
Dow may not be immediately associated with the “Dow” in the Dow Jones Industrial Average, but it is an excellent undervalued high-yield dividend stock for investors seeking income. The company has four main segments: packaging, infrastructure, consumer, and mobility, and focuses on producing chemicals used in various products for the lowest possible price. While its model is dependent on demand and susceptible to downturns, Dow is optimistic about its future growth prospects.
Despite facing challenges in recent years, Dow is making strategic investments in low-carbon efforts and new markets, positioning itself for growth. The company’s commitment to reducing emissions and expanding its capacity shows its dedication to sustainability and profitability. Additionally, Dow’s capital-return goals indicate a focus on enhancing shareholder value through dividends and share buybacks.
While Dow’s stock price may have stagnated since its spinoff in 2019, its high dividend yield and growth potential make it an attractive option for income and value investors. With an eye toward the future and a focus on sustainability, Dow is a reliable choice for those seeking passive income and long-term growth opportunities.
If you’re considering investing in Dow, keep in mind that the Motley Fool Stock Advisor has identified the 10 best stocks for investors to buy now, and Dow may not be among them. However, past recommendations from the Stock Advisor service have generated significant returns for investors, making it a valuable resource for building a successful portfolio.
In conclusion, Dow offers a unique combination of income and value for investors looking to add a high-yield dividend stock to their portfolio. With a focus on growth and sustainability, Dow is a compelling option for those seeking passive income and long-term investment opportunities.
*The information provided is for educational and informational purposes only and does not constitute investment advice.