All It Takes Is $15,000 Invested in Each of These 3 Dow Jones Dividend Stocks to Help Generate Over $1,000 in Passive Income Per Year

Key Points

• Coca-Cola is down over 10% from its all-time high reached earlier this year.

• Procter & Gamble is restructuring to spur growth, but the stock is a good value and has an ultra-reliable dividend.

• Sherwin-Williams is a coiled spring ready for a rebound in consumer spending and the housing market.

• 10 stocks we like better than Coca-Cola ›

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As companies mature, they often choose to implement a dividend as a way to directly reward shareholders. On the other hand, smaller up-and-coming companies will want to put all the dry powder possible into their ideas to make them succeed.

Coca-Cola (NYSE: KO), Procter & Gamble (NYSE: PG), and Sherwin-Williams (NYSE: SHW) are three industry-leading companies that have been around for over 100 years. Their track records have earned them spots among the 30 components in the Dow Jones Industrial Average (DJINDICES: ^DJI).

Dividends have been an integral part of their capital allocation plans for decades. And because all three companies have steadily grown their earnings over time, they have also been able to increase their quarterly dividends.

Investing $15,000 into each stock could help you generate over $1,000 in passive dividend income per year. Here's why all three dividend stocks are great buys in October.

Image source: Getty Images.

This beverage behemoth is also a passive income powerhouse

Coca-Cola was one of the few stocks that held up when the market was tanking in response to tariff woes and geopolitical uncertainty in April. That same month, it hit an all-time high. But since then, Coke has been steadily falling while the S&P 500 (SNPINDEX: ^GSPC) has been gaining. And after a hot start to the year, Coke is now underperforming the Dow and the S&P 500.

^SPX data by YCharts

Coke's fundamentals remain intact. The company is generating solid organic growth and diversifying its beverage lineup by leaning into healthier options. Coca-Cola Zero Sugar and Diet Coke are performing well, and Coke is shifting from high-fructose corn syrup to cane sugar in the U.S.

Coke has the beverage lineup, supply chain (through its bottling partnerships), and brand power to adapt to changing consumer preferences. In the meantime, the stock has gotten much cheaper, sporting a 23.6 price-to-earnings (P/E) ratio compared to a 10-year median P/E of 27.7.

Coke yields 3.1%, making it a solid source of passive income. And it has raised its dividend for 63 consecutive years, earning it a coveted spot on the list of Dividend Kings.

P&G is a great value for long-term investors

P&G is in a similar boat to Coke. It has great brands, but consumers are getting hit hard by inflation and cost-of-living pressures.

In June, P&G announced plans to cut 7,000 jobs and exit certain brands and markets as part of a restructuring effort. In July, it announced that its chief operating officer, Shailesh Jejurikar, would take over as CEO on Jan. 1, 2026. These major shakeups, paired with relatively weak results and guidance, may be why P&G is hovering around a 52-week low at the time of this writing.

P&G has essentially three levers it can pull to grow its earnings. It can sell higher volumes of products, it can raise prices, and it can repurchase stock, which increases earnings per share. Volume growth is the most sustainable option because it has fewer limits compared to price increases, which are subject to consumer constraints. And there's only so much free cash flow P&G generates to buy back its stock (it usually reduces its share count by 1% to 2% per year).

Unfortunately, P&G has been relying heavily on price increases in recent years. And consumers are pushing back, as P&G's organic growth has drastically slowed.

PG data by YCharts

P&G now sports a P/E ratio of 23.4 and a forward P/E of 21.8 compared to a 10-year median P/E of 25.5. Like Coke, P&G is a Dividend King with a high yield at 2.8%. It's a great buy for risk-averse investors looking for a reliable source of passive income who don't mind giving the company time to restructure.

Sherwin-Williams' recent pullback is a buying opportunity

The paint and coatings giant had been a steady market outperformer to the point where it earned its spot in the Dow last year, replacing commodity chemical giant Dow Inc. But Sherwin-Williams' stock has underperformed the major indexes this year largely due to high interest rates, which are impacting many of its end markets.

Sherwin-Williams benefits from increases in consumer spending and economic growth. Higher borrowing costs have been a drag on the housing market and home improvement projects, as evidenced by Home Depot's lackluster earnings growth over the last couple of years.

Still, Sherwin-Williams has the makings of an excellent dividend stock for long-term investors. It has 46 consecutive years of dividend raises, but its yield is just 0.9% because the stock price has outpaced its dividend growth rate -- gaining 352% over the last decade, which is even better than the S&P 500's 244% increase.

Sherwin-Williams has an excellent business model. It sells its products through its own retail stores, online, and partnerships with retailers like Lowe's Companies. It also has a sizable coatings business and industrial and commercial paints business. Coatings are used to protect surfaces across various industries, including automotive, aerospace, and marine.

Add it all up, and Sherwin-Williams is a great buy in October.

Quality companies at attractive valuations

Coke, P&G, and Sherwin-Williams may not light up a growth investor's radar screen. But all three companies pay growing, ultra-reliable dividends.

Coke and P&G have discounted valuations compared to their historical averages, whereas Sherwin-Williams is roughly in line with its 10-year median valuation.

Add it all up and these are three picks ideally suited for investors looking to round out their portfolios with non-tech-focused ideas.

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Daniel Foelber has positions in Procter & Gamble. The Motley Fool has positions in and recommends Home Depot. The Motley Fool recommends Lowe's Companies and Sherwin-Williams. The Motley Fool has a disclosure policy.