A High-Yield Danger: Sector Overload

There are lots of good reasons to favor dividend-paying stocks, including their strong history of outperforming non-payers. That said, focusing only on fat dividends can be risky. And even if you seek robust dividends in attractive companies, you might end up overconcentrated in one or a few sectors, making your portfolio more vulnerable to the market's sudden mood swings. To demonstrate, I screened on Motley Fool CAPS for the highest-yielding large-cap stocks with market caps greater than $10 billion. See if you notice anything interesting about the eight top-yielding companies:... Read more