2022 has been a difficult year for the stock market and many of the most prominent indices have suffered double-digit losses. Among the stock indices that have fallen is the Dow Jones Industrial Average.
As a result of the drop in prices, the dividend yield of many of the components is on the rise for the new year.
Let’s take a look at the top-performing Dow Jones stocks heading into 2023.
What has happened
The Dow Jones Industrial Average was created in 1896 by Charles Dow and is currently one of the oldest and most followed stock market indices for keeping track of the overall health of the stock market. The Dow Jones Industrial Average is made up of 30 stocks on a price-weighted basis.
The SPDR Dow Jones Industrial Average ETF Trust (NYSE:DIA), which tracks the index, is down 9.2% year-to-date in 2022 (as of December 29).
The 5 Highest Performing Dow Jones Stocks
Of the 30 components of the Dow Jones, 27 of the stocks pay dividends. Currently, the only names not paying dividends are Boeing Co (NYSE:BA), Walt Disney Co (NYSE:DIS) and Salesforce Inc (NYSE:CRM).
The average payout was around 2.57% for the 30 components of the Dow Jones, with the top four paying 5% or more at the time of writing.
These are the 10 Dow Jones stocks with the best dividend yield for the start of 2023
Verizon Communications Inc. (NYSE:VZ). Yield 6.76%, shares were down 25.1% as of 12/29/2022
Intel Corporation (NASDAQ:INTC). Yield 5.57%, shares had plunged 50.8% as of 12/29/2022
Dow Inc (NYSE:DOW). Yield 5.53%, shares were down 11% as of 12/29/2022
Walgreens Boots Alliance Inc (NASDAQ: WBA). Yield 5.12%, shares had lost 29.4% as of 12/29/2022
3M Co (NYSE: MMM). Yield 4.94%, shares were down 32.2% as of 12/29/2022
IBM (NYSE:IBM). Yield 4.68%, shares had rallied 3.7% as of 12/29/2022
Amgen, Inc. (NASDAQ:AMGN). Yield 3.24%, shares had gained 16.1% as of 12/29/2022
Cisco Systems Inc (NASDAQ:CSCO). Yield 3.20%, shares had lost 24.8% as of 12/29/2022
Chevron Corporation (NYSE:CVX). Yield 3.19%, shares had skyrocketed 49.5% as of 12/29/2022
JPMorgan Chase & Co (NYSE:JPM). Yield 3%, shares were down -15.9% as of 12/29/2022
Because it is important
Given the period of high inflation and the recession that the market has suffered in 2022, investors could seek security and bet on shares of blue chip companies that pay dividends to start 2023.
Although it is true that a stock that pays dividends does not guarantee that the stock will not go down, it can provide a certain level of security and income to investors.
Some investors have ditched growth stocks for value stocks in 2022, and that trend could continue into the new year.