Dogs of the Dow: These Are The Best Dividend Stocks in July 2025

There are several successful investing strategies in the stock market and one of them is Dogs of the Dow. It is a strategy where investors buy the 10 highest-yielding Dow dividend stocks at the start of the year. The top 10 stocks are identified at the market’s final close in December and investors place an equal amount into each of the 10 stocks and hold them for a year. It is a simple and low-maintenance approach suited for income investors. Whether you’re holding the Dogs of the Dow or keen to learn more about the stocks, here are the three best stocks for July. 

Verizon Communications 

Telecommunications company Verizon Communications, Inc. (NYSE: VZ) has had a good start to 2025. The first quarter numbers were impressive with a revenue of $25.6 billion. It has seen a strong subscriber growth in its wireless retail segment. The company reported 115.1 million wireless retail connections and 94.9 million wireless retail postpaid connections. The service revenue was up 2.7% year over year at $20.8 billion and the equipment revenue was $4.5 billion. 

The company is investing in building network infrastructure to increase the adoption of 5G devices. It has a customer-focused strategy that helps retain existing users and attract new customers. Verizon has also introduced unique AI features that boost customer service.

It has agreed to buy Frontier Communications and the deal is set to complete in 2026, when it aims to add about 10 million broadband connections to its network. Verizon is expecting to see wireless service revenue growth in the range of 2% to 2.8% and a cash flow between $17.5 billion $18.5 billion this year. 

Exchanging hands for $42, VZ stock is up 6.44% year-to-date and 3% in 12 months. It is moving closer to the 52-week high of $47. The stock has a dividend yield of 6.33% and it has increased dividends for 21 consecutive years. It has a forward P/E of 10.17 which makes it an attractive stock to buy. Steady growth in its wireless equipment segment will drive revenue higher in the coming years. 

The company has an expanding business, an attractive valuation, and hasn’t cut dividends in a long time. It is one of the top stocks in the Dogs of the Dow and is worth adding to your portfolio this month.

Chevron Corporation 

The second stock on the Dogs of the Dow is the oil and gas giant Chevron Corporation (NYSE: CVX) . Exchanging hands for $147, CVX stock has remained flat this year and it is due to the geopolitical issues which have impacted crude oil prices. However, for the long term, Chevron is an attractive stock with a dividend yield of 4.64%. The company has increased dividends for 38 consecutive years.

Chevron has a highly diversified upstream, midstream, and downstream business. While it is impacted by the asset price volatility, the company has enough liquidity to keep going. It has a strong balance sheet, low debt, and focuses on rewarding investors through dividends. In 2024, the company returned $27 billion in buybacks and dividends. It has a dividend payout ratio of 74% and hasn’t cut its payout in 90 years.

In the first quarter, Chevron reported earnings of $3.5 billion and generated $7.6 billion in cash flow from operations. It returned $6.9 billion to shareholders including $3 billion in dividends. Analysts are bullish on the stock and Barclays has a price target of $156 with an equal weight rating while Piper Sandler has a price target of $164 with an overweight rating. 

Once crude oil price rises, Chevron will bounce back and we could see the stock move higher. Its strong dividend provides protection from the stock downside, making it one of the most reliable dividend stocks of 2025. 

Johnson & Johnson

Pharmaceutical company Johnson & Johnson (NYSE: JNJ) is a dividend aristocrat that has become a part of several portfolios. The company has increased dividends for 63 consecutive years and has a dividend yield of 3.35%.

Exchanging hands for $155, the stock is up 7.8% year-to-date. Johnson & Johnson has seen volatility due to the ongoing talc lawsuit but its long-term picture looks attractive. The company has a global presence and a diversified portfolio of drugs that continue to generate revenue. In the first quarter, it saw a 2.4% rise in sales growth to $21.9 billion and the EPS came in at $4.54. 

The management increased its full-year sales guidance to reflect the addition of CAPLYTA which will give a significant boost to its neuroscience segment. JNJ has a pipeline of 106 candidates out of which 40 are in phase 3. Johnson & Johnson has shown tremendous resilience over the years and has been in the business for over a century. It has the ability to navigate the choppy waters of a lawsuit and temporary market volatility. 

As compared to other businesses, JNJ is fairly tariff-resistant. It can fare better as compared to others since pharmaceutical tariffs are zero. While they can have an impact on the supply chain, the overall business will only be affected to a small extent.

Johnson & Johnson has already committed to investing $55 billion in the U.S. manufacturing operations over the next four years. It is expanding business, has a strong pipeline, and enough liquidity to keep rewarding investors. What’s not to like about this stock?

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