. Dow Jones Industrial Average It includes 30 blue chip stocks, which investors generally see as a proxy for the general economy. In the midst of this prominence, all of the 30 components except two make money to shareholders, which tend to verify this stability.
Nevertheless, investors may ask for stock growth potential with a strong dividend. For this purpose, these Dow stocks are well positioned well to provide increasing payments from stock price growth without sacrificing potential returns.
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After years of slow income increases, growth is finally accelerating Cisco Systems (NASDAQ: CSCO). Networking Giant’s product orders from the purchase of SPLUNK increased by 20% year to year (or 9% if not including SPLUNK). Growth comes as it works to integrate AI by companies into security and network management.
Rising orders should also support the one who has already served as a strong dividend. Since the company started to offer dividends in 2011, its payment has increased every year. Cisco at $ 1.64 per share each year dividend 2.4 %. This compares well S&P 500Average yield 1.2%.
More importantly, Cisco can probably maintain dividend growth. In the first nine months of the financial year of 2025 (ended on April 26), it provided a $ 9.3 billion free cash flow to cover the costs of $ 4.8 billion at that time.
Investors have started to notice the stock in recent months. The stock increased by 50% compared to last year and the 28 P/E ratio is sitting at multi -year high. In spite of this recent growth, the P/E ratio is a little bit of 30 times the S&P 500 average earnings, which shows that there is still time to buy Cisco shares.
Dividend investors can also find a lot to love McDonald’s (NYSE: MCD) stock. Of course, in the restaurant industry, a stagnant economy and intensive competition may not appear in the midst of the competition, and some investors may be cautious of the ratio of 27 P/E. However, since McDonald’s actually profits from franchising, such difficulties may have a relatively less effect on the upper line.
McDonald’s earns most of his income from a comprehensive real estate portfolio from franchising fees and restaurant rentals. In addition, while claiming a percentage of income from these restaurants, restaurant sales means that the company has less impact on the company than competitors. Chipotle Mexican grille.
This stability contributes to the power of the rising dividend every year since 1976. It gives 2.3%per year at $ 7.08 per year. In addition, the payment seems to be sustainable since the free cash flow more than $ 6.7 billion covers dividend costs of approximately $ 4.9 billion in 2024.
In addition, the stock was slightly above 20% last year. While combining this with dividend returns, investors seem to have surprisingly solid growth and income stock at McDonald’s.
In the case of Dow dividend stocks, investors may have a unique purchase opportunity in health insurance. Unitedhealth Group (NYSE: UNH). The company offers health insurance and employer plans to individuals, including Medicare and Medicaid buyers.
However, the stock fell approximately 40%, as increasing medical costs led to a lower earning guidance in the first quarter of 2025. In addition, the Ministry of Justice and New York Times They questioned some business applications. The decline in the price of stocks that is so severe has eliminated almost all five -year earnings of sales.
Although such challenges tend to focus on stocks, Unitedhealth for at least a period of time should be positioned for healing if it correctly deals with these claims. In addition, the company’s current stock price offers investors a tremendous incentive to get a position in the stock. The P/E ratio has dropped to 13, the lowest point since 2013.
The decline increased the dividend return to 2.8%, close to the highest levels of all time. However, it should be noted that the payment has increased for 15 years and now pays $ 8.84 per share.
In addition, despite increasing costs, Unitedhealth’s free cash flow of approximately $ 21 billion allowed $ 7.5 billion in 2024 to cover dividend costs. Therefore, Unitedhealth may not only meet the generous, rising dividend, but also have a unique opportunity to buy this stock at an unusual price. If it can tolerate risks, health insurance stock offers tremendous growth potential.
Imagine this before buying stock at Cisco Systems:
. Motley Fool Stock Advisor Analyst team determined what they believed Top 10 stocks For investors to buy now… And Cisco Systems was not one of them. 10 shares that make the cut can produce monster returns in the coming years.
When think Netflix It made this list on December 17, 2004 … If you invested $ 1,000 during our advice, You have $ 674.281!* Or when Nvidia It made this list on April 15, 2005 … If you invested $ 1,000 during our advice, You will have $ 1,050.415!*
Now worth drawing attention Stock consultant Total average return 1,058A performance that breaks the market compared to 179% for -S & P 500. Don’t miss the last 10 lists, it can be used when you join Stock consultant.
Will Will None of the mentioned stocks have a position. Motley Fool is positioning and recommending Chipotle Mexican Grill and Cisco Systems. Motley recommends the Fool Unitedhealth Group and recommends the following options: short June 2025 $ 55 CHIPOTLE MEXICAN GRILL. Motley Fool’s Explanation policy.
