Should You Buy the 3 Highest-Yielding Dividend Stocks in the Dow Jones?
During down markets like the one we are going through, investors tend to gravitate more toward income stocks -- stocks that pay out high dividends.
Good dividend stocks not only pay you to own them every quarter, but they are also typically those of stable, established companies that have solid long-term track records. If you are looking for stocks from these types of companies that produce good dividends, the Dow Jones Index is not a bad place to start, considering it includes 30 blue chip companies.
Stocks that have the highest dividend yields are not always the best income stocks because some may be paying out more in dividends than they can reasonably handle -- which means they will ultimately have to cut the dividend down the road. The yield may also be inflated by a sinking stock price. This is what is called a dividend trap.
Source Fool.com