Want $200 Monthly Passive Income? Put $80,000 in This Vanguard ETF

The Dow Jones Industrial Average (DJINDICES: ^DJI) comprises 30 leading blue chip firms. These industry leaders put value over expansion because they're huge and established. Indeed, 29 of them pay dividends, save Amazon, which joined the Dow a few weeks ago.  

Dow Jones stocks are leading corporations with strong moats safeguarding them from competition and potential, making them good investments. Dow membership doesn't guarantee a buy. Even a high dividend yield doesn't guarantee a stock buy. Since it may indicate a falling stock price, it's usually cause for concern.  

1. Verizon: 6.4% return Verizon stock has lost 28% in the past five years, including a 13% rise this year. Even with dividends, it has lagged the S&P 500 index over the previous five years. Verizon may be changing, as the year-to-date gain shows. Verizon's older companies have been slow, but its 5G infrastructure, the latest technology, is paying off.  

The company's efforts are paying off with better free cash flow and lower expenses as wireless services revenue rose 3% in the fourth quarter. In the 2023 fourth quarter, it attracted 413,000 net broadband users, its fifth straight quarter over 400,000.  

Verizon has raised its dividend for 17 years, a consistent track record useful when evaluating dividend equities. Verizon offers passive income, and the dividend appears safe.  

2. 3M: 5.8% 3M has disappointed investors in recent years for more serious reasons. It's had many challenges, including not producing the inventions it was known for for years. Settlements are ongoing for many lawsuits. Over the previous five years, 3M stock has fallen 56%.  

In an effort to recover, the corporation split off Solventum, a healthcare startup, this week. It simplified its structure and cut costs, and while revenues fell in the 2023 fourth quarter, margins rose. It's getting a new CEO on May 1 and services segments like semiconductor materials that could grow rapidly.  

3M is a Dividend King with one of the longest streaks of annual hikes at 65 years, which may appeal to passive income investors. But 3M's current situation doesn't appeal to investors, and other high-yielding equities are more stable.  

3. Dow: 4.9% Dow Chemical was set out from DuPont de Nemours in 2019. Since it makes a variety of chemical substances for business-to-business clients to employ in products and manufacturing, it's struggled with inflation like many other enterprises. Dow stock has outperformed the other stocks on this list, increasing 10% over the past five years and 7% this year.  

Dow has a strong balance sheet that attracts investors despite near-term challenges. Since the spinoff, it has met its commitments, including industry-leading cash generation, debt reduction, prudent capital deployment, and a sustainable ROIC above 13%.  

Dow (or one of its affiliates) has paid 450 dividends since 1912, an impressive streak. It pays $0.70 per share per quarter and has not raised the dividend since the spinoff. Dow may not grow dividends, but it pays a dependable, high-yielding dividend, making it the most tempting investment for safe passive income investors.  

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