Should You Buy the 3 Highest-Paying Dividend Stocks in the S&P 500?
The logic seems sound enough. The whole point of investing is making money. Dividends are money. Therefore, buying high-yield dividend stocks is a great way to achieve your investing goal.
That simplistic line of thinking, however, ignores several more important realities that come with stock picking. The big takeaway is that big dividend yields alone don't tell the whole story. Other questions need to be asked (and answered), like: Can those big dividend payments be sustained? Is the stock in question set to lose more value than its dividend payments are worth? Will that particular pick even be able to outpace inflation in the long run?
Before you go hunting for high yields, even among the market's biggest names, here's what you need to consider.
Source Fool.com
