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Investors currently have a chance to pick up some of the best dividend stocks by looking at those in the Dow Jones Industrial Average.
The Dow's current dividend yield is 2.19%, better than the S&P 500's current yield of 1.9% and well above the near-zero interest paid on money market and savings accounts.
The 10 dividend stocks listed below are among the best in the Dow. They all offer modest valuations and hearty yields, as well as the potential for capital appreciation based on forward earnings estimates. Many have a price-earnings ratio (P/E) below the Dow's average 16.18 and below its historical average of 15.
Take a look.
10 Best Dividend Stocks in the Dow
Travelers Companies Inc. (NYSE: TRV), an insurance giant founded in 1853, was added to the Dow in June 2009. The stock trades at a modest P/E of 9.57 and has a dividend yield of 2.32%. The company has raised dividends every year for the last five. TRV is projected to report earnings per share (EPS) of $9.26 in fiscal 2015, up from this year's forecast of $9.19.
JPMorgan Chase & Co. (NYSE: JPM) is the largest U.S. bank by assets and the country's only bank in the top 10 ranking of largest banks in the world (no. 6). Founded in 1799, the storied bank was added to the Dow in May 1991. The stock trades at a P/E of 15.39 and carries an appealing 2.69% dividend yield. The bank has boosted dividends annually since 2011. JPM is expected to report EPS of $5.99 for FY2015, up from forecasts of $5.52 for 2014.
International Business Machines Corp. (NYSE: IBM) has been revered through its lucrative history, with roots dating back to the 1880s, as one of the world's largest computer companies and systems integrators. IBM holds more patents than any other U.S.-based tech company. Big Blue was a Dow member from 1932 through 1939 and was added again in June 1979. IBM is expected to post EPS of $19.84 in fiscal 2015, up from $17.90 in 2014. Shares trade at a modest P/E of 12 and boast an attractive quarterly dividend of $1.10 per share for a 2.3% yield. Dividends have increased every year for the last 14.