High yielding dividend stocks can provide a nice return during stock markets that seem to be going nowhere. Historically approximately half of the total return of stocks have come from the dividend payouts of stocks. Here are the five highest yielding stocks of the Dow Jones Industrial Average.
Verizon Communications is a communications company famous for its "Can you hear me now?" commercials. It is the highest yielding stock in the Dow Jones Industrial Average with its payout of just over 6% which is more than can be made with many certificates of deposit. Why not make a decent return on your investment while you wait for the capital gains in this stable, blue-chip company?
AT & T is another company that currently is the exclusive provider of wireless services for the iPhone. Its stock sports a yield of 5.8% which is a decent return while waiting for any future capital gains. The price to earnings ratio of the stock is a reasonable 13.3 also.
Pfizer is currently trading in the middle of its 52 week range at a price of around $17 per share. Its P/E ratio is also about 13 and has a yield of 4.2%. Pfizer is famous as the manufacturer of "the Blue Pill," Viagra.
Merck is another pharmaceutical company in the Dow that is yielding over 4% annually. Its P/E is a very reasonable 8.6 for the trailing 12 months which is below the average ratio over the past 5 years suggesting the opportunity for capital gains.
Kraft is of course famous as a manufacturer of many of the food brands found in kitchens all over the world. Some of these include its Kraft brand cheeses, Oscar Mayer meats, and Oreo cookies. The dividend yield for the stock is 3.7%.
Investing in high paying dividend stocks can be a good idea to boost investment returns in any stock market environment. Of course, you have to be careful that you just don't go for yield but have to make sure that the company's business isn't so tenuous that the price of the stock has collapsed leading to an artificially high yield. General Motors heading into bankruptcy would be a good example. For the most part, though, high yielding Dow stocks are safe with secure dividends.
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