2 Dow Dividend Stocks Set to Drop?

Updated

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.

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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."

The article 2 Dow Dividend Stocks Set to Drop? originally appeared on Fool.com.

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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