Should You Buy the 3 Highest-Paying Dividend Stocks in the Dow Jones?

Many blue chip stocks pay attractive dividends. The Dow Jones Industrial Average (DJINDICES: ^DJI) is loaded with blue chip stocks. It stands to reason that many Dow stocks should pay dividends that investors like.

Granted, most stocks in the Dow Jones have high dividend yields, which, in my definition, must be at least twice the dividend yield of the S&P 500 (SNPINDEX: ^GSPC). However, some do. Here are the three highest-paying dividend stocks in the Dow -- and whether they're smart picks to buy right now.

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1. Verizon Communications

Verizon Communications (NYSE: VZ) easily ranks as the Dow's highest-paying dividend stock, with a forward dividend yield of 6.21%. Even better, the company has increased its dividend for 18 consecutive years.

Most investors are probably quite familiar with Verizon. The company provides broadband and wireless services to millions of customers worldwide. Verizon was founded in 2000 with the merger of Bell Atlantic and GTE.

Some dividend stocks have high yields because their share prices have plunged. That isn't the case with Verizon, though. Its shares have jumped 9% year to date, a solid performance amid the stock market volatility.

Verizon's gains in 2025 and its ability to pay attractive dividends year after year are due to the company's underlying business strength. In the first quarter of 2025, Verizon generated industry-leading wireless service revenue. It posted the most wireless retail core prepaid net additions since 2021. The company also expanded its broadband market share.

2. Chevron

Chevron (NYSE: CVX) comes in second place with its forward dividend yield of 4.81%. The company has an even more impressive dividend track record than Verizon, raising its dividend 38 years in a row.

The No. 2 spot is a familiar one for Chevron: It's also the second-largest U.S. oil company based on market cap, trailing only ExxonMobil. Chevron's roots date back to 1879 with the establishment of the Pacific Oil Company.

Dividends aren't the only way Chevron rewards shareholders. In the first quarter of 2025, the oil and gas giant spent $3.9 billion on stock buybacks. That's a higher amount than the $3 billion Chevron paid out in dividends during Q1.

Shareholders can probably count on more of the same going forward. Chevron's financial priorities include growing its dividend and steadily repurchasing shares.

3. Merck

Merck (NYSE: MRK) lands the No. 3 position among the Dow's highest-paying dividend stocks, with a forward dividend yield of 4.03%. It has also increased its dividend for 15 consecutive years.

Like Chevron, Merck has been in business since the 19th century. The company was founded in 1891 to distribute chemicals in New York City and the surrounding areas. Over time, Merck grew to become one of the world's largest drugmakers.

Merck's cancer immunotherapy Keytruda was the world's top-selling drug in 2024, with sales of almost $29.5 billion. The company also has many other products in its lineup, including the Gardasil human papillomavirus (HPV) vaccine and type 2 diabetes drug Januvia.

Are these Dow dividend stocks smart picks right now?

Should you buy these highest-paying Dow dividend stocks right now? My view can be summed up in the lyrics sung by the late rock star Meatloaf: "Two out of three ain't bad."

I'll start with the outlier that I'm not especially bullish about -- Merck. The main problem for the company is that it's highly dependent on Keytruda. The blockbuster drug generated 46% of Merck's total sales in Q1. However, its U.S. patent expires in 2028. I'm concerned about how well Merck will navigate this major loss of exclusivity.

On the other hand, I like Verizon and Chevron. Verizon's business is booming. Chevron's business isn't, but the company is positioned to weather lower oil prices better than most in its industry.

Both dividends appear to be safe, and both companies could also enjoy higher growth once pending acquisitions are completed.

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Keith Speights has positions in Chevron, ExxonMobil, and Verizon Communications. The Motley Fool has positions in and recommends Chevron and Merck. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy.