It's been over 100 years since investors began viewing the Dow Jones Industrial Average (DJINDICES: ^DJI) as an overall stock market barometer. However, despite its longevity, the index is deeply flawed.

The Dow Jones Industrial Average is a price-weighted index. As a result, a 1% gain for a relatively small member like Goldman Sachs will move the index higher than a 2% gain for Apple. A higher weighting for the smaller company seems bonkers when you consider Apple's market cap is more than 21 times larger.

The Dow Jones Industrial Average has one redeeming feature that makes it worth an income-seeking investor's attention: The index contains just 30 businesses from all major sectors of the economy, except for transportation and utilities. As the most powerful companies in their industries, they have a great chance of delivering steadily growing dividend payments.

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Source Fool.com