Investors should look beyond an ASX-listed company’s dividend yield when screening for income stocks, says Wilsons Advisory, arguing that using the measure in isolation does not accurately reflect long-term potential.

Indeed, investing for income by simply buying stocks with a high dividend yield has not proved to be an effective strategy. The S&P/ASX Dividend Opportunities Index, made up of 50 high-yielding stocks across the sharemarket, shows an annualised return of 6.4 per cent over the past 10 years, versus a 9.2 per cent return for the S&P/ASX 200.