5 Dogs of the Dow Are Crushing the S&P 500 and Nasdaq in 2025

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The Dogs of the Dow is a well-known strategy first published in 1991 by Michael O’Higgins. The plan aims to maximize investment yields by purchasing the 10 highest-yielding dividend stocks from the Dow Jones Industrial Average each year. The highest-yielding stocks are also the lowest-priced stocks in the venerable average, as the lower a stock (or bond) goes in price, the higher the attached yield or coupon becomes. This year, five Dogs of the Dow are absolutely crushing not only the S&P 500, which is up 8.1% year to date, but also the tech-heavy Nasdaq, which is up 9.0%.

After lagging the S&P 500 and Nasdaq for the past two years, the Dow Jones industrials continue to trail the two indices in 2025, up just 5% year to date. We screened the highest-yielding stocks in the venerable index, those that were awarded Dogs of the Dow status to start 2025, to see how they have responded so far this year. Five are not only higher on the year but still offer big yields, a degree of safety from tariffs, and a long history of corporate success. In addition, all are outperforming the S&P 500 and the Nasdaq so far in 2025. All also remain Buy-rated by the top Wall Street firms we cover.

Why do we cover the Dogs of the Dow?

Since the turn of the century, the Dogs of the Dow have significantly outperformed the overall Dow Jones industrials and the Small Dogs of the Dow, which are the five highest-yielding stocks, even more. The fact that investors are buying the highest-yielding companies in the venerable index improves the chances for total return gains.

Amgen

Amgen Inc. (NASDAQ: AMGN) discovers, develops, manufactures, and delivers human therapeutics worldwide. Up a stunning 20% this year, this biotech giant remains a top stock for investors to buy, offering a safer way to capitalize on the massive potential growth in biosimilars. Amgen focuses on:

• Inflammation
• Oncology/hematology
• Bone health
• Cardiovascular disease
• Nephrology
• Neuroscience

The company’s products include:

• Enbrel to treat plaque psoriasis, rheumatoid arthritis, and psoriatic arthritis
• Neulasta reduces the chance of infection due to a low white blood cell count in patients with cancer
• Prolia to treat postmenopausal women with osteoporosis
• Xgeva for skeletal-related events prevention
• Otezla for the treatment of adult patients with plaque psoriasis, psoriatic arthritis, and oral ulcers associated with Behcet’s disease
• Aranesp to treat a lower-than-normal number of red blood cells and anemia
• Kyprolis to treat patients with relapsed or refractory multiple myeloma
• Repatha reduces the risks of myocardial infarction, stroke, and coronary revascularization

Piper Sandler has an Overweight rating and a Wall Street high $328 target price.

Chevron

Chevron Corp. (NYSE: CVX) is an American multinational energy company that is predominantly specialized in oil and gas. This integrated giant is a safer option for investors looking to position themselves in the energy sector, and it pays a substantial dividend, which was recently raised by 5%. With shares up a whopping 15.7% in 2025, Chevron operates integrated energy and chemicals businesses worldwide in two segments.

The Upstream segment is involved in the following:

• Exploration, development, production, and transportation of crude oil and natural gas
• Processing, liquefaction, transportation, and regasification associated with liquefied natural gas
• Transportation of crude oil through pipelines, and transportation, storage
• Marketing of natural gas, as well as operating a gas-to-liquids plant

The Downstream segment engages in:

• Refining crude oil into petroleum products
• Marketing crude oil, refined products, and lubricants
• Manufacturing and marketing renewable fuels
• Transporting crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car
• Manufacturing and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives

It also involves cash management, debt financing, insurance operations, real estate, and technology businesses.

Chevron announced in late 2023 that it has entered into a definitive agreement with Hess Corp. (NYSE: HES) to acquire all the outstanding shares of Hess in an all-stock transaction valued at $53 billion, or $171 per share based on Chevron’s closing price on October 20, 2023. Under the terms of the agreement, Hess shareholders will receive 1.0250 shares of Chevron for each Hess share. The transaction’s total enterprise value, including debt, is $60 billion. The Federal Trade Commission approved the deal last October, and it is expected to close this summer after the completion of some final issues.

Wells Fargo has an Overweight rating with a $178 price objective.

Johnson & Johnson

Johnson & Johnson (NYSE: JNJ) is engaged in the research and development, manufacture, and sale of a range of products in the healthcare field. The company’s primary focus is on products related to human health and well-being. Shares are up 15% in 2025, and the company raised its dividend for the 63rd consecutive year.

The company operates through two segments:

• Innovative Medicine
• MedTech

The Innovative Medicine segment focuses on various therapeutic areas, including:

• Immunology
• Infectious diseases
• Neuroscience
• Oncology
• Pulmonary hypertension
• Cardiovascular and metabolic disorders.

Medicines in this segment are distributed directly to retailers, wholesalers, distributors, hospitals, and healthcare professionals for prescription use.

The MedTech segment encompasses a diverse portfolio of products utilized in the fields of orthopedics, surgery, cardiovascular care, and vision care. These products are distributed to wholesalers, hospitals, and retailers and are used primarily in professional fields by physicians, nurses, eyecare professionals, and clinics.

UBS has a Buy rating to go with its $190 price target.

Coca-Cola

This American multinational corporation was founded in 1892, and it remains a top long-time holding of Warren Buffett. He owns a massive 400 million Coca-Cola Co. (NYSE: KO) shares, which have increased by a huge 15% in 2025. It is the world’s largest beverage company, offering consumers more than 500 sparkling and still brands.

Led by Coca-Cola, one of the world’s most valuable and recognizable brands, the company’s portfolio features 20 billion-dollar brands, including:

• Diet Coke
• Coca-Cola Light
• Coca-Cola Zero Sugar
• Caffeine-free Diet Coke
• Cherry Coke
• Fanta Orange
• Fanta Zero Orange
• Fanta Zero Sugar
• Fanta Apple
• Sprite
• Sprite Zero Sugar
• Simply Orange
• Simply Apple
• Simply Grapefruit
• Fresca
• Schweppes
• Dasani
• Fuze Tea
• Glacéau Smartwater
• Glacéau Vitaminwater
• Gold Peak
• Ice Dew
• Powerade
• Topo Chico
• Minute Maid

Globally, it is the top provider of sparkling beverages, ready-to-drink coffees, and juices and juice drinks.

Through the world’s most extensive beverage distribution system, consumers in more than 200 countries enjoy the company’s beverages at a rate of over 1.9 billion servings per day. It is also important to remember that the company owns 16% of Monster Beverage Corp. (NASDAQ: MNST), which continues to deliver strong financial results.

UBS has a Buy rating and a target price of $84.

Verizon

Verizon Communications Inc. (NYSE: VZ) is an American multinational telecommunications company. Its stock continues to offer tremendous value. It trades at 9.13 times its estimated 2026 earnings and is up 13% in 2025. Verizon provides a range of communications, technology, information, and entertainment products and services to consumers, businesses, and government entities worldwide.

It operates in two segments:

• Verizon Consumer Group
• Verizon Business Group

The Consumer segment provides wireless services across the United States through Verizon and TracFone networks, as well as through wholesale and other arrangements.

It also provides fixed wireless access (FWA) broadband through its wireless networks and related equipment and devices, such as:

• Smartphones
• Tablets
• Smartwatches and other wireless-enabled connected devices

The segment also offers wireline services in the Mid-Atlantic and northeastern United States through its fiber-optic network, Verizon Fios product portfolio, and copper-based network.

The Business segment provides wireless and wireline communications services and products, including:

• FWA broadband
• Data
• Video and conferencing
• Corporate networking
• Security and managed network
• Local and long-distance voice

Network access services to deliver various IoT services and products to businesses, government customers, and wireless and wireline carriers in the United States and internationally.

Tigress Financial has a Buy rating and a price target of $56.

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