The Dynamic Dividend

Weekly Dow Jones Yield Rankings (2/4/12)

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 1.59% during the fifth week of 2012, pushing the average dividend yield among its components up from 2.70% at the end of the previous week to 2.73% today. Not a single blue chip adjusted its payout and only five saw their shares drop during the week. As a result, 25 yields weakened while only five grew stronger.

AT&T (T) continues to feature the highest payout (5.88%) among Dow components, despite its yield falling below the 6% threshold this week. The rest of the top five also remains the same, 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.

The Coca-Cola Company (KO) leapfrogging Travelers (TRV) for the #13 spot was the only change to the rankings this week. The beverage giant and insurer now yield 2.76% and 2.73%, respectively. Coca-Cola is expected to boost its payout later this month.

Bank of America (BAC) continues to be the lowest-yielding Dow component, and the gap between the banking giant and its fellow blue chips only widened as its shares — which are now up more than 41% on the year — jumped another 7.5% this week. BofA’s paltry quarterly payout of $0.01 per share now produces a yield of just 0.51%, making it the only Dow component with a sub-1% yield. Alcoa (AA) has the second-worst yield at 1.12%.