At the start of the new year, many investors might think about the "Dogs of the Dow" investment strategy, which involves purchasing the 10 highest-yielding stocks in the Dow Jones Industrial Average on the first trading day of the year. The returns of this strategy are mixed -- some years, it beats the index, and in others, it doesn't (it beat the index in 2022).

While we won't be looking at all 10 Dogs of the Dow stocks today, we'll focus on the three highest-yielding ones -- Verizon Communications (NYSE: VZ), Intel (NASDAQ: INTC), and Dow (NYSE: DOW) (the chemical company, not to be confused with the index). With these three, investors can capture some very high-yielding stocks, with the lowest paying a fantastic 6.5% dividend.

So are these stocks suitable investments? Or is the above-average dividend just luring in unsuspecting investors? Let's find out.

Continue reading

Source Fool.com