If you’re on the prowl for a good income stock, make sure it’s showing relative strength. A common pitfall is to focus on yield alone, but in many cases, high yielders have rough charts, marred by bouts of institutional selling. Whether it’s a growth stock or an income stock, a key IBD tenet always applies: Buy stocks that mutual funds are buying, not selling.
Three dividend leaders are showing tight action in their charts and could be on the cusp of upward moves if the market uptrend gains traction.