Highest Yield in the S&P 500

The timing is right for dividend stocks. High-yielding dividend stocks are one of the few places left where income investors can harvest a solid income in this low interest rate environment. In addition, the recent extension of the Bush tax-cut laws has increased the favorable tax treatment for dividend income.

However, high-yielding stocks can be dangerous. Many times the yield is high because the price has fallen as a result of fundamental problems at the company. Also, a high payout ratio is a warning sign that a stock may not be able to maintain the dividend. Where can you find high dividend yields that are secure? One of the best dividend sectors of the market has become telecom stocks. These companies have become the high-yielding utilities of the new century. [See: "The Best Utility Stock You can Own"] While growth in the sector has slowed because of wireless saturation and fierce competition, the steady stream of dependable revenue generated by these companies make for great dividends.

Source: Street Authority

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