Are These 15%-Plus Dividend Yields Safe?

Posted by D4L | Wednesday, March 19, 2014 | | 0 comments »

The trick with high-yield dividend stocks is that they sound great on the surface, but they can be oh so dangerous … and the high yield could actually be the warning sign. High dividend yields can often be a product of a severely reduced stock price, and while quick dips can happen on market sentiment, monster gaps down usually happen for a reason.

Also, sometimes that dividend yield isn’t sustainable … so drawing a 15% yield from a dividend stock is small consolation if the company either cuts the dividend or loses more than 15% in market cap in a hurry. Today, we’re looking at three dividend stocks with sky-high dividend yields to see whether they’re safe: Western Asset Mortgage Capital Corporation (WMC), CYS Investments (CYS) and Chesapeake Granite Wash Trust (CHKR).

Source: InvestorPlace

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