Should You Buy the 3 Highest-Paying Dividend Stocks in the Dow Jones?
The Dow Jones Industrial Average's highest-yielding stock is telecom giant Verizon Communications (NYSE: VZ), with a nearly 7.7% yield. Next up is pharmacy chain Walgreens Boots Alliance (NASDAQ: WBA) at nearly 6.6%. Coming in third is industrial icon 3M (NYSE: MMM), with a yield of nearly 5.9%. Besides being in the Dow 30, all of these companies have something else in common -- they are dealing with big corporate issues.
Are the risks these stocks present worth taking on for dividend investors? Let's take a closer look at these three high-yielding Dow stocks and see if an answer presents itself.
Verizon is one of the largest providers of telecom services in the United States. Although it owns legacy assets, like copper wire phone services and fiber optic systems, its big business is its cellular phone service. There are only a handful of meaningful competitors in the space, and the competition for customers is fierce. That makes sense; a cell network costs a lot to build, but adding new users isn't all that expensive once the system is up and running. The monthly bill customers pay and the relatively modest churn rate between services, meanwhile, creates an annuity-like income stream.
Source Fool.com
