In this article, we discuss 5 best Dogs of the Dow to invest in. If you want to read our detailed analysis of Dogs of the Dow investment strategy and its returns, go directly to read 10 Best Dogs of the Dow to Invest In.
5. Chevron Corporation (NYSE:CVX)
Dividend Yield as of August 22: 3.60%
Chevron Corporation (NYSE:CVX) is an American multinational energy industry company that specializes in renewable fuel. The company has been growing its dividends consistently for the past 35 years. It pays a quarterly dividend of $1.42 per share, with a yield of 3.60%, as of August 22.
In August, Credit Suisse initiated its coverage of Chevron Corporation (NYSE:CVX) with an Outperform rating and a $202 price target, appreciating the company’s strong earnings and a 50% hike in its buyback range.
Berkshire Hathaway owned $23.3 billion worth of stakes in Chevron Corporation (NYSE:CVX) in Q2 2022, becoming the company’s largest stakeholder. In addition to this, 59 hedge funds in Insider Monkey’s database owned stakes in the California-based company, up from 53 in the previous quarter. These stakes hold a collective value of over $26 billion.
Diamond Hill Capital mentioned Chevron Corporation (NYSE:CVX) in its Q1 2022 investor letter. Here is what the firm has to say:
“Other top contributors in Q1 included multinational energy company Chevron Corp. (NYSE:CVX). The company benefited from increased energy demand as COVID-related economic restrictions eased in tandem with concerns regarding supply interruptions related to Russia’s invasion of Ukraine.”
4. Exxon Mobil Corporation (NYSE:XOM)
Dividend Yield as of August 22: 3.74%
Exxon Mobil Corporation (NYSE:XOM) is one of the world’s leading international oil and gas companies. The company specializes in the production and exploration of crude oil and natural gas. In August, BofA called XOM its top major idea following the company’s strong Q2 earnings and the firm lifted its price target on the stock to $123 with a Buy rating on the shares.
In Q2 2022, Exxon Mobil Corporation (NYSE:XOM) reported revenue of $115.6 billion, showing a 70.8% year-over-year growth. The company generated earnings of $17.9 billion and its cash flow from operating activities stood at over $20 billion. It distributed $7.6 billion to shareholders during the quarter, including $3.7 billion in dividends.
On July 27, Exxon Mobil Corporation (NYSE:XOM) declared a quarterly dividend of $0.88 per share, in line with its previous dividend. The company has been making dividend payments for the past 100 years while maintaining a 39-year track record of consistent dividend growth. As of August 22, the stock’s dividend yield came in at 3.74%.
At the end of Q2 2022, 72 hedge funds in Insider Monkey’s database owned stakes in Exxon Mobil Corporation (NYSE:XOM), worth over $7.4 billion.
Saturna Capital mentioned Exxon Mobil Corporation (NYSE:XOM) in its Q4 2021 investor letter. Here is what the firm has to say:
“Few companies maintain their position at the top for more than a decade or two. One that did was Exxon, which appeared decennially from 1980 through 2010. In 2019 it was ranked 10th, but as of writing has dropped to 39th place.”
3. 3M Company (NYSE:MMM)
Dividend Yield as of August 22: 4.10%
An American mining and manufacturing company, 3M Company (NYSE:MMM) was listed as one of the 30 companies in the DJIA in 1976. The company holds one of the longest dividend growth streaks in the market, raising its dividends for the past 64 years consecutively. Moreover, the company has also been making consistent dividend payments for over 100 years. As of August 22, the stock’s dividend yield stood at 4.10%.
In August, Bernstein assumed its coverage of 3M Company (NYSE:MMM) with a Market Perform rating and a $155 price target. The firm appreciated its healthcare segment as the company announced the planned spin-off of its healthcare business by the end of 2023.
As of the end of June 2022, 54 hedge funds tracked by Insider Monkey reported owning stakes in 3M Company (NYSE:MMM), up from 51 in the previous quarter. These stakes hold a collective value of over $1.3 billion. Jim Simons, Ken Griffin, and Ken Fisher were some of the company’s most prominent stakeholders in Q2.
Mayar Capital mentioned 3M Company (NYSE:MMM) in its recently-published Q2 2022 investor letter. Here is what the firm has to say:
“We also bought back into 3M (NYSE:MMM) as the stock reached attractive levels. We’d sold our shares in 3M last year when the price exceeded our estimated fair value, and as better opportunities to invest in presented themselves at the time. Nonetheless, we’ve always liked this business with its diversified revenues, its R&D leadership and its stable margins.
2. International Business Machines Corporation (NYSE:IBM)
Dividend Yield as of August 22: 4.77%
International Business Machines Corporation (NYSE:IBM) is a New York-based technology company that provides related services to its consumers. In August, Credit Suisse initiated its coverage of the stock with an Outperform rating and a $163 price target, highlighting the historical outperformance of the IT hardware sector during recessionary periods due to its strong balance sheets and steady cash flows.
In Q2 2022, International Business Machines Corporation (NYSE:IBM) reported strong results, posting revenue of $15.5 billion, up 9.3% from the same period last year. The company’s cash generation remained strong in the first half of 2022, with net cash from operating activities standing at $4.6 billion. Its free cash flow came in at $3.3 billion and paid $1.5 billion in dividends to shareholders, reflecting secure dividend payments.
International Business Machines Corporation (NYSE:IBM) currently pays a quarterly dividend of $1.65 per share and has a dividend yield of 4.77%, as of August 22. The company maintains a 27-year track record of dividend growth.
At the end of Q2 2022, 40 hedge funds tracked by Insider Monkey owned investments in International Business Machines Corporation (NYSE:IBM), valued at over $948.3 million.
St. James Investment Company mentioned International Business Machines Corporation (NYSE:IBM) in its Q4 2021 investor letter. Here is what the firm had to say:
“IBM was not the first company to build computers. The distinction belongs to Sperry-Rand’s subsidiary UNIVAC, which introduced the first commercially successful computers in the early 1950s. In this era, IBM did possess the largest research and development department of the business machines industry and quickly caught up, introducing cost-competitive computers a few years after UNIVAC. By the late 1950s, IBM held the dominant market share in computers. IBM also touted a vastly superior sales organization, which used a sales tactic called “paper machines” (the equivalent of today’s “vaporware”). If a competitor’s product was selling well in a market segment that IBM had yet to penetrate, the company would announce a competing product and start taking orders for the “paper machine” long before it was available.
One cannot overstate how powerful IBM was in the computer industry in the 1950s and 1960s. Every competitor rightly worried that if their product worked too well for too long, it was only a matter of time before an army of IBM salesforce representatives mobilized. In their easily recognizable uniforms of starched white shirts, red ties and blue suits, IBM marketers marched on their customers and offered a more expensive, but much more defensible, choice. “Nobody gets fired for buying IBM” was a common phrase. Even competitors acknowledged that the company excelled at sales. As a UNIVAC executive once complained, ‘It doesn’t do much good to build a better mousetrap if the other guy selling mousetraps has five times as many salesmen.’” (Click here to see the full text)
1. Walgreens Boots Alliance, Inc. (NASDAQ:WBA)
Dividend Yield as of August 22: 5.02%
Walgreens Boots Alliance, Inc. (NASDAQ:WBA), an Illinois-based pharmaceutical company, hiked its quarterly dividend by 0.5% in July to $0.48 per share. This marked the company’s 47th consecutive year of dividend growth. As of August 22, the stock’s dividend yield stood at 5.02%.
In fiscal Q3 2022, Walgreens Boots Alliance, Inc. (NASDAQ:WBA) reported net cash provided by operating activities of $1.6 billion and its free cash flow stood at $1.3 billion. The company’s cash position also remained stable, reporting nearly $2.3 billion in cash and cash equivalents and $18.8 billion in total assets.
Walgreens Boots Alliance, Inc. (NASDAQ:WBA) was a popular stock among elite funds in Q2 2022, as 40 hedge funds in Insider Monkey’s database owned stakes in the company, up from 38 in the previous quarter. These stakes have a total value of nearly $600 million.
Miller Howard Investments mentioned Walgreens Boots Alliance, Inc. (NASDAQ:WBA) in its Q3 2021 investor letter. Here is what the firm had to say:
“While optimistic about a recovery, we continue to balance our cyclical holdings with dividend-payers in stable, less economically-sensitive industries. We took a position in Walgreens (WBA) based on its low valuation, high dividend yield, and stable business model.”
You can also take a look at 10 Large-Cap Dividend Stocks with Over 5% Yield and 10 Small-Cap Stocks that Pay Dividends
