Investing in dividend paying stock is not as easy as choosing the highest yielding stock for that moment. Rather its about researching on the sustainability of the yield over time. Dividends are paid by the company from their cash coffeurs. So the ability for a company to maintain a large cash reserve is important. I would choose a cash rich stock with lower but sustainable yield, then a debt laden high yield one any day.
Track record is also important. Look back over the years and check the company's dividend payout. Make sure it is fairly consistent through the good and bad times. A good track record gives you a better impression of the company that you will be invested in. That is why IPO stocks are such a hassle to valuate, as you may not get a concrete picture of their past perfomance.
Lastly, take note of company's debt. ......