The Dividend Tool: For Choosing Stocks
Their are several different dividend strategies for picking stocks such as “The Dogs of the Dow”, “The Dow 5″ and “The Foolish 4″ (more on these another time). Each has its own variation for selecting stocks by their dividend yield. While some stocks with high yields indicate that the business itself maybe struggling, on the flip side it can be construed as a sign of strength. Many might swear by these mechanical stock picking methods, however their is more to choosing good quality stocks than just by using some mechanical formula. While the dividend is one of the tools in choosing good quality stocks, it is only that, one tool. Highlighted below is a current list of Dow 30 stocks which are ranked in order of highest to lowest by dividend yield.
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