Generating Passive Income: 3 Top Dow Dividend Stocks to Buy for 2025 and Beyond

Core Insights - The article highlights the attractiveness of dividend-paying stocks within the Dow Jones Industrial Average, specifically focusing on Chevron, Johnson & Johnson, and Verizon as top choices for passive income in 2025 and beyond [2][13]. Chevron - Chevron currently offers a dividend yield of over 5%, significantly higher than the average yield of Dow components, which is below 2% [4]. - The company has a strong track record of increasing dividends for 38 consecutive years, demonstrating resilience through various commodity cycles [5]. - Chevron's breakeven level is around $30 per barrel, and it expects to boost free cash flow by$9 billion next year, assuming oil prices average 60 per barrel [6]. Johnson & Johnson - Johnson & Johnson's dividend yield is approximately 3.4%, with a recent increase of nearly 5%, extending its dividend growth streak to 63 years [7]. - The company holds an AAA bond rating and has a net debt of 13.5 billion against a market cap of 370 billion, indicating a strong financial position [8]. - In the previous year, Johnson & Johnson generated 20 billion in free cash flow, covering its $11.8 billion dividend outlay while investing over$17 billion in R&D [9]. Verizon - Verizon boasts the highest dividend yield in the Dow at 6.2%, supported by $36.9 billion in cash flow from operations [10]. - The company is acquiring Frontier Communications for$20 billion, which is expected to enhance its fiber network and yield annual cost savings of at least $500 million [11]. - Verizon has delivered its 18th consecutive annual dividend increase, maintaining the longest current payout-hiking streak in the U.S. telecom sector [12].