Should You Buy the 3 Highest Paying Dividend Stocks in the Dow Jones?

High dividend yields can be a warning sign for investors. Yields generally correlate negatively with stock price movements, after all, so higher yields often reflect a business' underperformance and investors' lack of confidence in its rebound potential. There are real dangers, in other words, involved in trying to boost your returns by reaching for yield.One popular tactic that investors use in an attempt to minimize those risks is to focus on high-quality companies that might just be going through rough patches. That's the thrust behind the "Dogs of the Dow" strategy, which involves purchasing the 10 highest-yielding stocks in the Dow Jones Industrial Average (DJINDICES: ^DJI) at the start of the year and holding onto them till the start of the next. Following that strategy has a two-fold benefit: It puts you into stocks with unusually high dividend yields, and it keeps you away from stocks that have rallied so much that they may carry potentially excessive premiums.Here's a look at the Dow's 10 highest dividend yields as we head toward the end of 2025. Keep in mind that an investor could earn a 1.8% yield by owning an index fund that tracked the whole 30-company index.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool