Dividends4Life: High-Yielders to Avoid

High-Yielders to Avoid

Posted by D4L | Wednesday, May 29, 2013 | | 0 comments »

Everyone’s looking for yield … but don’t chase it blindly. One of the biggest mistakes you can make is going after income chasing yield in unfavorable stocks. Stocks with poor fundamentals can fall in price to the point where the dividend yield appears quite compelling — 4% or even 5% or more — but don’t bite. The fundamentals of the company are still in decline, and the large institutional investors are dumping the stock. The added selling pressure can take the shares down by 20% or more, rendering the dividend payout insignificant.

Fortunately we have Portfolio Grader to help us identify those high-yielders with low potential that are better left untouched: Garmin (GRMN) - GPS devices are now built into our vehicles and even our smartphones, Cypress Semiconductor (CY) - sales and earnings have continued to decline as global semiconductor demand has weakened and NutriSystem (NTRI) - management is still warning of customer retention problems.

Source: InvestorPlace

Related Articles:
- Dividend Investors Should Focus On Stocks, Not The Market
- The Secret Ingredient of Dividend Growth Stocks
- 9 High-Yield Stocks With A Low Price To Book
- Defined-Benefit Pension Plus Dividend Stocks For A Prosperous Retirement
- 5 Dividend Stocks To Buy And Hold, Not Buy And Forget

Click here to have future posts delivered to you for free!

_____________________________________________________________________

0 comments

Post a Comment

~

Latest From Dividend Growth Stocks

Popular Posts Last 30 Days