The Dynamic Dividend

Weekly Dow Jones Yield Rankings (2/19/12)

Below are the 30 components of the Dow Jones Industrial Average, ranked by dividend yield as of Friday’s closing bell. I publish this list each weekend, along with a summary of changes that occurred during the week that just ended.

For a current look at the important dividend-related characteristics of the 30 blue chip stocks in the Dow Jones Industrial Average (including yield), you can always access my Dow Jones Industrial Average Dividend Snapshot, which updates in real time.

The Dow rose 1.16% during the seventh week of 2012, pushing the average yield among its components down from 2.73% at the end of the previous week to 2.70% today. One blue chip raised its payout and only three saw their shares fall during the week. As a result, 26 yields weakened while only four strenghened.

AT&T (T) continues to feature the highest payout (5.86%) among Dow components. In fact, the top nine positions remain in place from last week, with Verizon (VZ) continuing to hold down the #2 spot. Aside from the telecom rivals, big pharma names Merck (MRK) and Pfizer (PFE) are the only blue chips yielding 4% or better.

There weren’t any major moves on the rankings this week, but a pair of companies did make small climbs.

Kraft Foods (KFT) leapfrogged Chevron (CVX) to join the top ten as its shares fell 1.5%. The global food company — which will soon split into two separate entities — now yields 3.05%.

The Coca-Cola Company (KO) jumped over McDonald’s (MCD) to take the #13 position, despite its shares rising 1.6%. That’s because the beverage giant raised its dividend for the 50th consecutive year, becoming just the 11th publicly-traded company with an active streak that long. (See the other ten here.) Coke, which entered the week paying 2.77% (and entered the year paying 2.69%), now yields 2.95%.

Bank of America (BAC) continues to be the lowest-yielding Dow component, though the gap between the banking giant and its fellow blue chips did narrow as its shares — which are now up “just” 44% on the year — fell 0.6% this week. BofA’s paltry quarterly payout of $0.01 per share now produces a yield of 0.50%, making it the only Dow stock with a sub-1% yield. Alcoa (AA) has the second-worst yield at 1.18%.