Dividends4Life: Is Linn Energy Worth the Risk for a 12%-Plus Dividend?

Linn Energy LLC (NASDAQ:LINE) is a favorite among dividend stock investors right now who are looking to bargain hunt in the energy sector. Thanks to crashing crude oil prices, LINE stock has plummeted 70% over the past year … and as a result, many screens for high-dividend stocks show Linn Energy LCC at or near the head of the pack thanks to big payouts and a depressed share price.

However, my favorite saying about dividend stocks is that the quickest way to double a company’s dividend yield is to simply slash the stock price in half — and income investments like LINE with big yield often hold big risk thanks to substantial downward momentum. So should investors consider a bargain buy in Linn Energy, or should they steer clear? I think the latter. First, consider that the headline dividend yield you get on many financial websites is not the real yield for investors going forward.

Source: InvestorPlace

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