The 12 Highest-Yielding Dow Stocks
Believe it or not, there are a dozen stocks that are components of the Dow Jones Industrial Average index and also provide yields of more than 2.5%.
While it’s nice to own a blue-chip stock, it’s better to own a blue chip with a high yield — and it’s best when the stock is also owned by professional investors who agree with your shareholdings.
With that in mind, we have set up a portfolio of 12 High-Yield Dow Stocks on Stockpickr.com.
The highest-yielding Dow stock is Pfizer (PFE - Cramer’s Take - Stockpickr - Rating), which offers a yield of 4.5% and has been paying dividends for 25 years. Unfortunately, the drugmaker has been suffering because of competition from generic Zocor against its drug Lipitor. However, the company’s problems haven’t scared all investors from the stock.
Noted value investor David Dreman owns the stock. Dreman is one of the greats, and his large-cap fund’s returns, 17% annually since inception, demonstrate it. His fund’s Web site states: “We believe that the markets are not perfectly efficient and that, in particular, behavioral finance plays a considerable role in investor actions and over-reactions and subsequently in stock price movements.” That could be his view on Pfizer.
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