The Dow Jones Industrial Average features 30 of the country's most prominent companies. Many of these blue chip stocks pay dividends. Their high quality makes them ideal options for investors seeking to generate sustainable passive income.
Three of the Dow Jones' top dividend stocks are Chevron (CVX 0.52%), Coca-Cola (KO 0.49%), and Verizon (VZ 0.39%). They pay higher-yielding and steadily rising dividends backed by rock-solid financial profiles. Those features make the trio ideal for those seeking to generate more passive income in 2026.
Image source: Verizon.
A well-oiled, dividend-paying machine
Chevron currently has a dividend yield approaching 4.5%, more than double the average dividend yield of a Dow stock (2%). The energy giant has increased its dividend payment for 38 consecutive years, demonstrating its ability to grow its dividend during multiple commodity cycles. Chevron has grown its payout at a peer-leading rate over the past decade.
The oil giant had the lowest upstream breakeven level in the industry last year at around $30 per barrel. Chevron also has a fortress-like balance sheet, with a net debt ratio of 15.1% at the end of the third quarter, well below its target range of 20% to 25%.
NYSE: CVX
Key Data Points
Chevron expects to produce significantly more free cash flow in 2026 and beyond. A combination of recently completed expansion projects, its merger with Hess, and cost-saving initiatives positions Chevron to generate $12.5 billion of additional free cash flow in 2026 at an average oil price of $70 a barrel. Meanwhile, it expects to grow its free cash flow at a more than 10% annual rate through 2030 at that price point. It can still deliver robust growth at the currently lower oil pricing level. As a result, Chevron should have plenty of fuel to continue increasing its high-yielding dividend in 2026 and beyond.
Dividend royalty
Coca-Cola's dividend yield currently clocks in at around 3%. The global beverage giant has raised its dividend payment for 63 years in a row. That qualifies it for the elite group of Dividend Kings, companies that have 50 or more consecutive years of dividend increases.
NYSE: KO
Key Data Points
The company's thirst-quenching brands that include Coca-Cola, Dasani, Gold Peak, and Minute Maid, generate steadily rising revenue and strong cash flows. The beverage giant uses a portion of its cash flow to invest in high-growth areas. These investments help support Coca-Cola's financial ambition of delivering 4% to 6% annual organic revenue growth and high-single-digit earnings-per-share growth.
Coca-Cola also has a top-notch balance sheet. That gives it the financial flexibility to acquire high-growth beverage brands as opportunities arise. Prior acquisitions of brands like Fairlife and Topo Chico have helped drive a quarter of its earnings-per-share growth since 2016.
A cash flow machine
Verizon has the highest yield in the Dow Jones at nearly 7%. The telecom giant has increased its big-time payout for 19 years in a row.
NYSE: VZ
Key Data Points
The mobile and broadband provider generates lots of recurring revenue and significant cash flow. It was on track to produce $37 billion to $39 billion of operating cash flow last year and between $19.5 billion and $20.5 billion of free cash flow after capital expenditures. That's plenty of cash to cover its dividend payments, which total about $11.5 billion annually.
In addition to capital investments, Verizon also makes acquisitions to expand its network. The company plans to close its $20 billion all-cash deal for Frontier Communications in 2026 to further enhance its fiber capabilities and ability to cross-sell mobile and broadband services to more subscribers. These drivers should grow its revenue and cash flow, enabling Verizon to continue increasing its hefty dividend.
High-quality income stocks
Chevron, Coca-Cola, and Verizon have excellent track records of growing their high-yielding dividends. They back their payouts with strong financial profiles, which gives them the capacity to invest in their continued growth. Their combination of yield and financial strength makes them ideal Dow dividend stocks to buy for passive income this year.
