Dividends4Life: 5 High-Dividend Stocks to Avoid This Fall

5 High-Dividend Stocks to Avoid This Fall

Posted by D4L | Thursday, October 22, 2015 | | 0 comments »

The current low-interest rate environment has made investors of all ages seek out income-producing stocks to add to their portfolios. But while we Fools tend to love dividend checks as much as anyone, we recognize that not all dividend stocks are created equal. It's certainly tempting to want to add a dividend stocks with a high yield to your portfolio as a way to turbo-charge your income, but companies that have high yields but deteriorating business fundamentals may actually have to cut their payouts in the future.

With that in mind, we asked a team of Motley Fool contributors to highlight a stock with a high dividend yield that they think you should avoid this fall. Read below to see if you agree with their assessment: Yet even with the obvious holiday appeal of toys, Mattel (NASDAQ:MAT) is in a precarious position, and dividend investors could end up feeling like the Grinch if they're not careful. While I appreciate a company with a long history of paying a strong dividend as much as any other Fool, I can't help but think that McDonald's (NYSE:MCD) best days are behind it. When you hear Avon Products (NYSE:AVP) calling these days, you might not want to open the door -- at least not the door to your portfolio. A 16% dividend yield on a stock trading for about six times earnings is about as good as it gets, but it's too good to be true. I'm talking about Medallion Financial (NASDAQ:TAXI). One, in particular, that I'd suggest distancing yourself from is Corrections Corp. of America (NYSE:CXW), also known as CCA.

Source: Motley Fool

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