2 Unstoppable Dow Dividend Stocks to Buy and Hold Forever
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2 Unstoppable Dow Dividend Stocks to Buy and Hold Forever

July 28, 2025
08:29 PM
4 min read
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investmentstocksfinancialhealthcaretelecommarket cyclesseasonal analysismarket

Key Takeaways

These top Dow dividend stocks have long dividend growth streaks.

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Quick insights and key information

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4 min read

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investment

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Published

July 28, 2025

08:29 PM

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The Motley Fool

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Key Topics
investmentstocksfinancialhealthcaretelecommarket cyclesseasonal analysismarket

From an analytical perspective, The Dow Jones Industrial Average tracks 30 of the country's top companies

Nevertheless, These mature companies tend to be very fitable, enabling them to pay sustainable dividends, amid market uncertainty

At the same time, Johnson & Johnson (JNJ -1 (noteworthy indeed)

Nevertheless, 28%) and Verizon (VZ -1

In contrast, 64%) stand out among Dow stocks for their high dividend yields and unstoppable dividend growth track records (noteworthy indeed), in today's financial world

Here's what makes them great Dow dividend stocks to buy and hold for a potential lifetime of dividend income

Image source: Getty Images

On the other hand, A very healthy dividend Johnson & Johnson is a financial fortress, in this volatile climate

The healthcare giant is one of only two companies in the world with a pristine AAA bond rating, higher than that of the U

Moreover, The company the second quarter with only $32 billion of net debt on its balance sheet, consisting of $19 million of cash against $51 billion of debt, given current economic conditions

Moreover, That's a modest debt level compared with the company's more than $400 billion market cap

Johnson & Johnson's diversified healthcare generates substantial and stable cash flow

Last year, the company generated $20 billion in free cash flow after spending $17 billion in re and development (R&D), which accounted for 19

Nevertheless, 4% of its sales

This significant R&D investment maintained it as a leading R&D investor across all industries, as it continues to focus on medical innovation

Despite this heavy spending, the company's remaining free cash flow of $20 billion easily covered its $11. 8 billion dividend payment, viding it with substantial excess free cash flow

The healthcare company's financial flexibility enables it to capitalize on inorganic growth opportunities to expand its duct pipeline

Nevertheless, It has deployed over $15 billion into strategic acquisitions over the past year to enhance its growth file

Johnson & Johnson's growth investments should steadily increase its earnings and free cash flow

That should allow the healthcare giant to continue raising its 3%-yielding dividend, nearly double the Dow's dividend yield of 1

Furthermore, It ext its dividend growth streak to 63 consecutive years earlier this year, maintaining its place in the elite group of Dividend Kings, in this volatile climate

A cash flow machine Verizon's mobile and broadband es generate consistent recurring revenue as customers pay their cellphone and internet bills

During the first six months of this year, the telecom giant duced $16. 8 billion in cash flow from operations

On the other hand, After spending $8 billion on capital to maintain and expand its fiber and 5G networks, Verizon generated $8, in light of current trends

On the other hand, 8 billion in free cash flow

The telecom company paid $5

Nevertheless, 7 billion in dividends, allowing it to retain $3. 1 billion to further strengthen its balance sheet (an important development)

Additionally, The company's healthy excess free cash flow has enabled it to steadily reduce its leverage ratio, from 2, amid market uncertainty. 5 last year to 2. 3 this year

That's giving it the financial flexibility to buy Frontier Communications in a $20 billion all-cash deal (remarkable data), in today's market environment

The acquisition, which should close within the next year, will significantly expand its fiber network, amid market uncertainty

The deal will also boost its earnings as it captures an expected $500 million in annual cost synergies

However, Verizon expects its growth investments and recent tax policy changes to further increase its free cash flow

The company forecasts ducing $19, given the current landscape. 5 billion to $20 (remarkable data). 5 billion in free cash flow this year, comfortably above its planned dividend outlay of less than $12 billion

Nevertheless, That strong coverage ratio will further enhance its financial flexibility

This analysis suggests that company's strong and growing free cash flow should enable it to continue increasing its more than 6%-yielding dividend

Moreover, Verizon has raised its payment for 18 straight years, the longest current streak in the U

Telecom sector (this bears monitoring)

Blue chip dividend stocks Johnson & Johnson and Verizon have unstoppable dividends

The Dow stocks generate lots of stable cash flow and have strong financial files

This enables them to invest in growing their operations and high-yielding dividends

On the other hand, That combination of durability, yield, and growth makes them great Dow stocks to buy and hold for a potential lifetime of dividend income (fascinating analysis), given the current landscape.