Good morning,
Almost everyone loves a company that pays high dividends. Who doesn't like receiving a check every quarter for simply owning a stock--especially if that stock is paying you back 4%, 5%, or even 10% of its share price in annual income each year?
In a world where 10-year treasuries are yielding 3%-4%, it seems hard to go wrong when buying a stock that's yielding significantly above the going rates on fixed-income assets. Unfortunately, the market rarely offers a free lunch.
While high-yield stocks may have a lot of near-term attractiveness, those same high-yields can often signal significant danger ahead. In some cases, it might mean that the company's dividend will stop growing or won't grow as fast as it used to. Worse yet, the company could cut its dividend, reduce the income you receive from owning the stock and drive down the value of the shares that you own.
5%-plus yields might seem like an easy opportunity to boost the investment income you receive, but high-yield stocks can just as often be a trap waiting to snare unsuspecting investors. It's not always easy to tell the difference though.
We have made a list of 20 high-yield dividend stocks that are paying an unsustainably large percentage of their earnings in the form of a dividend. These companies are all paying out more than 100% of their earnings per share in the form of a dividend, a sign that the advertised high-yield probably won't last.
View These "Retirement Ruining" Dividend Stocks Here
Matthew Paulson
MarketBeat.com
We empower individual investors to make better trading decisions by providing real-time financial information and objective market research.
MarketBeat is a small business and email is a crucial tool for us to share information, news, trading ideas and financial products and services with our subscribers (that's you!).
If you have questions about your subscription, feel free to contact our U.S. based support team via email at contact@marketbeat.com or leave us a voicemail at (844) 978-6257.
If you would like to unsubscribe or change which emails you receive, you can manage your mailing preferences or unsubscribe from these emails.
© 2006-2023 American Consumer News, LLC dba MarketBeat. 326 E 8th St #105, Sioux Falls, SD 57103. United States.
No comments:
Post a Comment