Does Ford's 4.8%-Yielding Dividend Make It a Top Income Stock?

Dividend stocks can be fantastic investments. That's abundantly clear from looking at their long-term returns. According to a study by Ned Davis Research and Hartford Funds, Dividend-paying stocks in the S 500 have outperformed the index over the last 50 years. They've delivered a 9.2% average annual total return compared to a 7.7% average annual total return for an equal-weighted S 500 index.

Giant automaker Ford Motor Company (NYSE: F) is offering an above-average distribution right now -- at the current share price, it yields 4.8%, compared to an average of 1.5% for the S 500. Here's a look at whether that big-time payout makes Ford stock a top choice for investors seeking income and market-beating total return potential.

While dividend-paying stocks can be market-beating investments, there's a huge caveat. dividend growth is the key to their outperformance:

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Source Fool.com