Meet The 15 Dow Jones Stocks That Combined For Over $150 Billion In Dividends In 2024 And Will All Likely Boost Their Payouts Again In 2025

The Dow Jones Industrial Average (DJINDICES: ^DJI) is composed of 30 industry-leading blue-chip businesses that represent the broader market. Many of these companies also pay growing dividends.

Here's a look at the 15 Dow components that paid the most dividends in 2024 -- combining for more than $150 billion in total -- and the benefits of investing in quality dividend-paying companies over the long term.

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Mammoth dividend payers

In order to raise its dividend payouts year after year, a company must steadily grow its earnings. In this vein, a track record of annual dividend hikes paired with a healthy balance sheet is a sign of a strong business. The following Dow stocks have all raised their dividends for at least 10 consecutive years.

Data sources: YCharts, McDonald's, IBM, Cisco, Walmart, UnitedHealth, Merck, Coca-Cola, Home Depot, Procter & Gamble, Verizon, Johnson & Johnson, Chevron, JPMorgan Chase, Apple, and Microsoft. Yields for share prices from Jan. 7.

However, there are plenty of examples of companies that have faced prolonged periods of slowing or stagnating growth, but kept raising their dividends anyway until the expense became financially damaging and management had to cut the dividend. This happened with Dow component 3M (NYSE: MMM), which cut its payout last year. But that ended up being the right decision, as it freed up capital for 3M to accelerate its turnaround. Investors cheered the cut, and the stock shot up 41.2% in 2024 -- outperforming the Nasdaq Composite, S&P 500, and Dow Jones.

In sum, a track record of dividend hikes doesn't automatically mean a stock is a passive income powerhouse or worth buying.

Distinguishing between dividend growth stocks and income stocks

The dividend is an integral part of the investment thesis for some companies. For others, it's like a bonus on top of a compelling growth story.

Apple and Microsoft are good examples of dividend growth stocks. They both continue to raise their dividends each year. And due to their size, they pay out larger total amounts of dividends than any other U.S. companies. They also repurchase a lot of their own shares. However, the key thing that makes them attractive as investments is the potential for capital gains driven by business growth.

By comparison, the dividend is a key piece of the investment thesis for Coca-Cola and Procter & Gamble. Both companies have raised their dividends for more than 50 straight years, earning them the coveted status of Dividend King. Both companies also have recession-resistant business models, which partially insulate their earnings from economic cycles, especially compared to more cyclical companies. They can be ultra-reliable sources of passive income no matter what the broader stock market is doing.

Using dividends to suit your financial objectives

Investing in industry-leading dividend-paying companies can be a great way to participate in the stock market while boosting your passive income stream. Risk-averse investors may prefer to go with global companies with multidecade track records of divined increases, whereas growth-oriented investors prefer options like Apple or Microsoft. One can also take the middle ground with a company like Home Depot, which has a solid yield, has made sizable payout raises in recent years, and has an excellent track record of outperforming the broader market over the long term.

The Dow Jones index serves as a useful repository of dividend stocks that investors can use as a starting point. However, it's important to do your own research as well so you truly understand what a company does and why you want to own it. This way, you can have the conviction to hold it through periods of volatility.

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JPMorgan Chase is an advertising partner of Motley Fool Money. Daniel Foelber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends 3M, Apple, Chevron, Cisco Systems, Home Depot, JPMorgan Chase, Merck, Microsoft, and Walmart. The Motley Fool recommends International Business Machines, Johnson & Johnson, UnitedHealth Group, and Verizon Communications and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.