The Dow Jones Industrial Average has entered a bit of a rough patch since cracking the key 40,000 level earlier this month, but the blue-chip index's rise over time shows the value of picking companies that pay solid dividends. Looking at the past 12 months, the 30-stock average is up 16.2% through Wednesday's close, and the price-weighted index is dominated by the likes of UnitedHealth Group , Goldman Sachs and Microsoft .
Another household name that has rewarded shareholders willing to hang in there and plug the dividend back into the stock is Coca-Cola . Shares are lagging the overall market, especially considering how tech has driven this year's advance: In 2024, the soft-drinks giant is up only 4.7%, compared with the S & P 500' s 10.4% gain. However, if you invested $1,000 into the stock 20 years ago and reinvested the dividends, your investment would have grown to $4,369.20.