Reasons To Buy Dow Dividend Stocks

According to data collected from FactSet Research, dividend payments reached $117 billion, or $347.43 per share, in February — only 7% below the 2007 record of $372.46 per share. The Dow has been rapidly picking up the pace ever since the financial crisis, which caused a dip in the overall tally as companies like General Electric (NYSE:GE) and Bank of America (NYSE:BAC) were forced to reduce or eliminate their dividends.

However, investors are concerned right now about the big run-up possibly putting stocks into dangerous (read: overvalued) territory — and they might end up passing on what are some strong long-term plays, even at current prices. Here’s why they should be doing the exact opposite and put their money to work in some of the big-time payers of the Dow: Long-Term Stability: Large helpings of consistent income, over time, helps to cushion investors; Higher Yield: there’s income, and then there’s income; and Room to Run: Those big Dow dividends could get even bigger, too.

Source: InvestorPlace

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