In the following video, analyst Austin Smith helps investors answer the question "Is the Dow Jones Industrials Average keeping too much of my money?" As an index, the Dow has a reputation for dividends. All of the components on the index pay dividends, but at only 2.9%, investors may be left wanting a bit more. It's important to remember that dividends are one way Dow components return money to us partial owners; the other is through share repurchases. When looking at the five-year track record of the Dow's earnings compared to its dividends and share buybacks, it actually looks like the Dow is giving us just about all it can afford.
The index is composed of weak and strong companies alike, and if you really want to get your money's worth, you have to look at exceptionally strong and generous individual stocks. Let me invite you to read the Fool's brand-new special report: "The 3 Dow Stocks Dividend Investors Need." It's absolutely free, so just click here and learn about the stocks that can make you rich.
