We have fabricated Y1Ba2Cu3O7-x step-edge junction dc superconducting quantum interference devices (SQUIDs) and characterized their noise performance. The current-voltage characteristics of our SQUIDs are of resistively shunted junction type with critical current densities jc of about 104 A/cm2 and maximum flux to voltage transfer functions δV/δΦ of 20 μV/Φ0 at 77 K. We compare model predictions for 1/f noise in dc SQUIDs with experimental data and show that the frequency dependent noise in our devices results from critical current fluctuations of the Josephson junctions. A bias current reversing technique is effective in suppressing this noise contribution. A flux noise Φn of 80 μΦ0/Hz1/2 at 1 Hz and 77 K was measured on a dc SQUID with an inductance Ls of 60 pH.