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2 Dow Dividend Stocks Set to Drop?

By Austin Smith – Updated Apr 7, 2017 at 12:45PM

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After looking at all of the stocks on the Dow Jones Industrial Average and comparing their current share prices with their average analyst price targets, both AT&T and Verizon are trading above their their average estimates at this time. 

Both of these dividend giants are up big this year, after shelter-seeking investors chased each company's yield and pushed shares significantly higher. Austin is inclined to think that most of these companies' gains have already been had and that the next 12 to 18 months will result in subpar returns.

That doesn't mean there aren't profits lef in this sector, though -- you just have to look elsewhere, such as at Apple and Google. See more in the following video.

If you're looking for a recommendation on how to play Apple along with continuing updates and guidance on the company whenever news breaks, we've created a brand-new report that details when to buy and sell Apple. To get started, just click here now.

If you'd rather get a recommendation about three huge dividends that aren't AT&T or Verizon, read our special free report: "The 3 Dow Stocks Dividend Investors Need."

Austin Smith owns shares of Apple. The Motley Fool owns shares of Apple and Google. Motley Fool newsletter services recommend Apple and Google. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Alphabet Inc. Stock Quote
Alphabet Inc.
GOOGL
$101.64 (3.04%) $3.00
Apple Inc. Stock Quote
Apple Inc.
AAPL
$146.10 (2.56%) $3.65
Dow Jones Industrial Average (Price Return) Stock Quote
Dow Jones Industrial Average (Price Return)
^DJI
$30,316.32 (2.80%) $825.43
Verizon Communications Inc. Stock Quote
Verizon Communications Inc.
VZ
$39.81 (1.66%) $0.65
AT&T Inc. Stock Quote
AT&T Inc.
T
$16.09 (1.20%) $0.19

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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