Sixteen weeks into 2014, the Dow, Nasdaq and Russell 2000 are all down year-to-date, while the S&P 500 is only ahead by about 1.5%. The market is dealing with some genuine obstacles that weren’t prevalent at the end of 2013, as worries over Russia’s annexation of Ukraine, slowing in China’s economy, Japan’s anemic exports, deflationary pressure in Europe and Fed tapering are weighing on investor sentiment.
If these issues weren’t enough, the “great rotation” out of the New America stocks — Facebook (NASDAQ:FB), Netflix (NASDAQ:NFLX), Amazon (NASDAQ:AMZN), Priceline (NASDAQ:PCLN), Tesla (NASDAQ:TSLA), 3D Systems (NASDAQ:DDD), Twitter (NYSE:TWTR), Yelp (NYSE:YELP) and too many biotech stocks to list — sent shivers through the market that are just now starting to abate. The mid-April rebound saw the bloodletting in high-beta stocks somewhat cease, while capital flows into dividend-paying stocks and high-yield assets remained strong.
Corrections come when markets least expect them, and high-valuation stocks have clearly undergone a fierce re-pricing of what investors believe to be growth at a reasonable price. So utilities, defensive blue-chip stocks and high-yield assets have been the tortoises that are winning the year-to-date race so far amid little fanfare. As such, it’s a great time to consider taking a stake in the highest-yielding dividend stocks of the Dow Jones Industrials. These well-known, best-of-breed companies have a long history of solid, dependable dividends.
These top 10 highest-yielding Dow dividend stocks, or “Dogs of the Dow,” pay out sizable yields ranging from 3.10% to 5.25%, and they’re often less susceptible to market downtrends, which makes them ideal holdings when so many traders are confused about which sectors of the market can still produce a return on investment.
Here are the top 10 Dow dividend stocks by yield for April. (Note: All yields and returns are as of 4/28.)