Although Verizon's recent increase is modest—only 0.5%—this telecom giant is expected to cross the year with the highest dividend yield in the Dow Jones Industrial Average.

Speaking of this, we need to talk about a trading strategy called the "Dow Jones Skinny Dog." The idea is simple: at the end of the year, take a quick look at the stocks in the Dow with the highest dividend yields. Usually, these stocks are heavily discounted, which pushes their yield numbers higher.

Currently, Verizon's dividend yield is 6.75%, far ahead of second place Chevron's 4.49%. Compared to the pathetic 1.15% implied yield of the S&P 500, the gap is even more obvious. That said, Verizon has gained 2.3% this year, ranking ninth from the bottom among the more than 500 stocks in the Dow—definitely not impressive.

However, investors can rest assured about dividends. The telecom giant announced as early as October that it has a "rock-solid commitment" to its dividends. In other words, if the yield drops later, it’s definitely because the stock price has gone up.