Retail investors have been increasingly following the trading activity of members of Congress, with some disclosures sparking interest in unfollowed stocks or companies that could benefit from potential government contracts.
A member of Congress may not have caused red flags with his latest purchase of blue-chip, dividend-paying stock, but investors may want to take note.
Congressman Buys Dow Jones Industrial Average Stocks
Congressman Lloyd Doggett (D-Texas) recently disclosed several new stock purchases, as reported by the Benzinga Government Trades page.
The purchases were:
- Dec. 18: Bought $1,000 to $15,000 in Home Depot (NYSE:HD) stock
- Dec. 15: Bought $1,000 to $15,000 in Coca-Cola (NYSE:KO) stock
- Dec. 12: Bought $1,000 to $15,000 in PPG Industries (NYSE:PPG) stock
- Dec. 12: Bought $1,000 to $15,000 in International Business Machines (NYSE:IBM) stock
- Dec. 9: Bought $1,000 to $15,000 in Johnson & Johnson (NYSE:JNJ) stock
Four of the five stocks purchased are members of the Dow Jones Industrial Average, which is tracked by the SPDR Dow Jones Industrial Average ETF (NYSE:DIA). The lone exception is PPG Industries, a well-known paint and protective products company.
A look at Doggett’s past stock trading history shows these same stocks were purchased multiple times every year.
Did You Know?
- Congress Is Making Huge Investments. Get Tips On What They Bought And Sold With Our Easy-to-Use Tool
Chasing And Reinvesting Dividends
All five of the stocks purchased by Doggett above were made using dividends from existing holdings. This method of investing known as dividend reinvestment allows investors to take their quarterly or annual dividend payouts from a company and buy more shares of that same company.
Doggett appears to be doing this multiple times a year, with purchases of all five stocks made in June, July, March, and April. The congressman may have skipped reinvesting dividends received in one quarter, which could result in the funds being treated as income or for tax purposes.
Benzinga recently shared that Sen. Mitch McConnell (R-Ky.) reinvests dividends annually in Wells Fargo (NYSE:WFC) stock.
For Doggett, the congressman is investing and reinvesting in four high-yield Dow Jones Industrial Average stocks and PPG. Here are the dividend yields for the five stocks:
- Coca-Cola: 2.9%
- PPG Industries: 2.7%
- Home Depot: 2.7%
- Johnson & Johnson: 2.5%
- International Business Machines: 2.2%
Benzinga recently published a list of the highest-yielding stocks in the Dow Jones Industrial Average to start 2026. Coca-Cola, Home Depot and Johnson & Johnson all ranked in the top 10.
Johnson & Johnson and IBM were among the five best-performing stocks in the Dow Jones Industrial Average in 2025, with gains of 43.1% and 39.1% respectively. Home Depot ranked just outside the top five underperforming stocks in the index with a loss of 11.5% in 2025.
Doggett’s method of reinvesting dividends in the high-yielding blue-chip stocks will allow him to accumulate more shares and grow his dividend payments even more overtime as long as the companies do not lower their payout.
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