Stocks continue to make new all-time highs, even after it was announced on Dec. 18 that the Federal Reserve will begin to scale back its asset purchases from $85 billion to $75 billion a month starting in January.
As the yields on equities begin to fall due to higher valuations, choosing where to invest your money for long-term growth becomes a more complicated task. The average yield on the Dow Jones Industrials is at 2.75%, which is now less than the 2.89% yield on a 10-Year Treasury note.
However, you won’t be collecting capital gains of up to 35% per year by investing in Treasuries. For those kinds of returns, look no further than the dividend-yielding stocks of the Dow. They are your best bet for collecting steady income because they are all well-established, blue-chip names that can almost guarantee that their dividends will hit your account each and every pay date.
Even with the Dow posting a year-to-date return of 24%, there’s no need to worry — the top 10 highest-yielding Dow dividend stocks, or “Dogs of the Dow,” still pay out sizable yields ranging from 2.9% to 5.2%.
Putting your money to work for you in these high-quality names going into 2014 will not only allow you to capture those sound payouts, but you’ll be comfortable knowing that you own the best of breed stocks that will continue to appreciate over time.
Here are the top 10 Dow dividend stocks by yield for December: