Consider expanding your investment portfolio with these 3 Dow Jones dividend stocks currently nearing their record highs.

Investing in and retaining high-dividend blue-chip stocks can significantly enhance your earnings from passive income sources.

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2025 September 29 . 4:41 AM

2 min read

Increase Your Holdings in These 3 Dow Jones Dividend Stocks Experiencing Record-Breaking Peaks?

Consider expanding your investment portfolio with these 3 Dow Jones dividend stocks currently nearing their record highs.

In the dynamic world of finance, two companies stand out for their resilience and growth potential - American Eagle and Coca-Cola.

American Eagle, a leading player in the payment processing and card issuing industry, boasts a diverse revenue stream. This revenue is primarily generated from card fees and transaction fees related to card usage frequency and volume. The company's top credit cards come with relatively high fees, but these are offset by attractive perks such as high baseline cash back rates and a variety of reward redemption options.

Recently, American Eagle has seen impressive growth. Over the last three years, its stock has soared by 130.3%, reaching a 21.8 price-to-earnings (P/E) ratio compared to a 17.2 10-year median P/E. Remarkably, the company's net write-off rate in its latest quarter was a mere 2%, significantly lower than the industry average of 4.44%. This underscores American Eagle's strong underwriting track record, making it an appealing investment option.

Meanwhile, Coca-Cola, the world's largest beverage company, offers a different investment opportunity. With a forward-yielding 2.9% dividend, suggested by Scott Levine from Coca-Cola, it is a compelling choice for investors seeking passive income. Coca-Cola's status as a Dividend King, having consistently increased its distribution for 63 consecutive years, further cements its reputation as a reliable dividend stock.

Coca-Cola's robust portfolio of consumer beverage brands positions it well to prosper as lifestyle trends shift towards healthier habits. Over the years, the company has acquired a variety of brands, diversifying its portfolio considerably.

On the corporate front, Honeywell International, a member of the Dow Jones Industrial Average, is undergoing a significant change. The company is set to split into three independent publicly traded companies by 2026. One of these companies, Honeywell Automation, combines building automation and industrial automation, reflecting a trend of industrial companies becoming more focused as automation becomes more software-driven.

The impending breakup of Honeywell is expected to release value for investors, as its constituent parts will trade as stand-alone companies. One such part, Solstice Advanced Materials, will offer investors an opportunity to invest in a pure-play sustainable materials business.

The Dow Jones Industrial Average, with its 30 industry-leading companies such as Salesforce, Amazon, and Nvidia, remains a great starting point for finding top dividend stocks. Honeywell International, close to its all-time high price, and Coca-Cola, with its consistent brand acquisitions and focus on healthier beverages, are two such stocks worth considering.

American Eagle, on the other hand, is arguably worth the premium price due to the strength of its underlying business model and clear path toward future earnings growth. Its ability to cater to affluent customers, even amidst pressures on consumer spending, makes it a resilient choice for investors.

In conclusion, American Eagle and Coca-Cola, each with their unique strengths, offer promising investment opportunities in the current market. The impending changes at Honeywell, particularly the breakup into three independent companies, also present exciting prospects for investors.