Dividend Investing in the Dow: Evaluating the 5 Highest-Yielders for 2026

The Dow Jones Industrial Average has long been a go-to destination for income-focused investors, and as we approach 2026, the five highest-yielding stocks-Verizon (VZ), Chevron (CVX), Merck (MRK), Amgen (AMGN), and Coca-Cola (KO)-stand out as compelling candidates. But with market volatility and sector-specific risks, it's critical to assess whether these dividends are sustainable and whether now is the right time to lock in long-term income. Let's break it down.

1. Verizon (VZ): A Telecom Titan with a Heavy Lever

Verizon's 6.66% yield is the crown jewel of the Dow, but its fundamentals tell a mixed story. The telecom giant reported a P/E ratio of 8.55 in Q3 2025, suggesting undervaluation, while its debt-to-equity ratio of 1.65-supported by $112 billion in unsecured debt-raises red flags. Earnings per share (EPS) surged to $1.17 in Q3 2025 from $0.78 in 2024, but the sector faces slowing growth and fierce competition. Verizon's ability to maintain its dividend hinges on its $10 billion in adjusted free cash flow and its dominance in 5G infrastructure. For income seekers, VZ is a high-risk, high-reward play: the yield is tempting, but leverage could crimp growth if interest rates remain sticky.

2. Chevron (CVX): Energy's Steady Hand

Chevron's 4.55% yield is underpinned by a conservative balance sheet. The oil and gas giant reported a P/E ratio of 21.01, higher than its sector average, but its debt-to-equity ratio of 0.22 is a standout. Q3 2025 adjusted earnings of $1.85 per share and $7 billion in free cash flow reinforce its ability to sustain payouts. While 2026 oil demand remains uncertain, Chevron's focus on LNG and natural gas-driven by data center demand and export policy support-positions it well. For long-term investors, CVX offers a blend of stability and moderate growth, though its valuation premium may limit upside.

3. Merck (MRK): Healthcare's Reliable Engine

Merck's 3.23% yield is backed by robust earnings and manageable leverage. The pharma giant's P/E ratio of 13.53 and debt-to-equity ratio of 0.80 reflect a disciplined approach to capital. Q3 2025 revenue hit $17.28 billion, with Keytruda sales rising 11.4% year-over-year. The healthcare sector, particularly MedTech, is thriving. Merck's pipeline of hospital acute care products like Bridion adds momentum. With a payout ratio of ~40% and a history of dividend hikes, MRK is a no-brainer for income seekers seeking resilience in a high-growth sector.

4. Amgen (AMGN): Biotech's Double-Edged Sword

Amgen's 3% yield is enticing, but its financials are a cautionary tale. The biotech leader reported a P/E ratio of 24.53 and a staggering debt-to-equity ratio of 567.49%, driven by $54.6 billion in total debt. While Q3 2025 GAAP EPS rose 14% to $5.93 and free cash flow reached $4.2 billion, its leverage could strain the dividend if earnings growth slows. The healthcare sector remains strong. For investors, Amgen's heavy debt load makes it a speculative bet. Investors should tread carefully-this is a stock for those who can stomach volatility in exchange for a high yield.

5. Coca-Cola (KO): The Timeless Beverage Behemoth

Coca-Cola's 2.92% yield is the lowest on the list, but its fundamentals are rock-solid. The beverage giant's P/E ratio of 21.88 and debt-to-equity ratio of 1.52 reflect a balanced approach to leverage. Q3 2025 net revenue grew 5% to $12.5 billion, with EPS surging 30% to $0.86. The sector's resilience-bolstered by essential demand and brand loyalty-ensures KO's dividends remain secure. While the yield isn't eye-popping, Coca-Cola's consistent performance and global reach make it a defensive play for long-term income.

The Verdict: Now Is the Time to Act

For income-focused investors, the five highest-yielding Dow stocks offer a mix of stability and growth. Chevron and Merck stand out as the most sustainable, with strong balance sheets and sector tailwinds. Verizon is a high-yield gamble, while Amgen requires a tolerance for risk. Coca-Cola rounds out the list as a defensive anchor. With the U.S. economy on track for a "soft landing," now is an optimal time to lock in these dividends-provided you diversify across sectors and monitor leverage-heavy names like Amgen and Verizon.