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Dividend stocks are companies that share some of their profit with shareholders in the form of periodic cash payments.And while being a dividend payer isn’t a requirement for admission to the index, a long history of increasing dividend payments to shareholders signals strength and maturity, things the Dow’s selection committee looks for when selecting stocks.The Dow’s components are selected by a five-person group known as the Averages Committee, which includes three representatives from S&P Dow Jones Indices and two representatives from the Wall Street Journal, a paper founded by Charles Dow, who created the index back in 1896. When adding stock to the Dow to replace companies that have been dropped, the Averages Committee considers each company’s “reputation, its history of sustained growth, its interest to investors, and its sector representation of the broader market,” according to S&P Global. Essentially, the DJIA comprises successful blue-chip companies that represent the best of their industry or sector — many of which happen to be great dividend payers.And while there are plenty of stocks that aren’t in the DJIA that may have higher dividend yields, choosing dividend stocks from the Dow can be a safer bet, as these companies are usually older, stronger, and less likely to lose significant value when held for the long term. Add in quarterly cash payments to you, and you’ve got the beginnings of a solid, sector-diversified, income-generating portfolio.So, which Dow stocks have the highest dividend yields? And, perhaps just as important, which have the highest dividend payout ratios, and which have increased their dividend payouts the most over the last decade, indicating a tendency to increase dividends over time?Before we dive into details, let’s define some terms:A stock’s dividend yield is calculated by dividing a company’s annual dividend payout per share by the company’s share price. In other words, dividend yield is how much free cash you get out of owning one share of a company’s stock per year.Dividend yield = dividends paid per share / share priceA stock’s dividend payout ratio, on the other hand, is calculated by dividing a company’s dividends paid per share by its earnings per share. In other words, it expresses the percentage of a company’s profit that it shares with stockholders as dividends each year.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,878.88 -29.98 (-0.43%)Dow 3048,977.92 -521.28 (-1.05%)Nasdaq22,668.21 -210.17 (-0.92%)Russell 20002,632.36 -44.93 (-1.68%)VIX19.86 +1.23 (+6.60%)Gold5,247.90 +53.70 (+1.03%)Trending tickersBTC-USD Bitcoin USD 66,821.77 +875.77 (+1.33%)CL=F Crude Oil Apr 26 67.02 +1.81 (+2.78%)ETH-USD Ethereum USD 1,963.19 +30.34 (+1.57%)XRP-USD XRP USD 1.38 +0.02 (+1.25%)BTC-CAD Bitcoin CAD 91,201.70 +1,195.30 (+1.33%)PortfolioSign in to access your portfolioSign inTop gainersAAOI Applied Optoelectronics, Inc. 84.23 +30.54 (+56.88%)BWIN The Baldwin Insurance Group, Inc. 23.23 +4.74 (+25.64%)FIGS FIGS, Inc. 15.45 +2.98 (+23.90%)DELL Dell Technologies Inc. 148.08 +26.63 (+21.93%)PSKY Paramount Skydance Corporation 13.51 +2.33 (+20.84%)Top losersRUN Sunrun Inc. 13.25 -7.17 (-35.11%)FIGR Figure Technology Solutions, Inc. 25.28 -8.76 (-25.73%)CRWV CoreWeave, Inc. 79.56 -18.07 (-18.51%)ACA Arcosa, Inc. 107.48 -20.02 (-15.70%)TPC Tutor Perini Corporation 75.37 -14.01 (-15.67%)Most activeNVDA NVIDIA Corporation 177.19 -7.70 (-4.16%)NFLX Netflix, Inc. 96.24 +11.63 (+13.75%)SOFI SoFi Technologies, Inc. 17.76 -1.34 (-7.02%)PLUG Plug Power Inc. 1.7900 -0.1200 (-6.28%)NU Nu Holdings Ltd. 14.98 -0.08 (-0.53%)Top economic eventsEarnings eventsMy earnings eventsEarnings events