Dividends4Life: 2 Dividend Stocks Yielding Above 4% -- That You Should Probably Sell

In investing, as in the rest of life, there are generally driving forces behind events. When a stock gets sold off, for example, it's often for valid reasons. However, after investors bid down the value of a stock that pays dividends, others can get sucked in by a now enticing-looking yield, or a seemingly attractive P/E ratio. The average dividend yield of the S&P 500 at the moment is about 2.1%, so a stock that yields 4% might be expected to tempt income investors, as well as those looking to bet on a potential rebound.

Here are two such stocks yielding above 4%, but if you're considering buying them to await a comeback, think twice. And if you bought them awhile back and are holding on, hoping for a miracle, think three times -- the yield doesn't seem worth the risk: It's been one brutal year for those invested in The Gap Inc. (NYSE:GPS); its share price has been chopped nearly in half. Another company singing a similar tune is Avon Products (NYSE:AVP), which has shed roughly 85% of its value in the past half-decade, yet boasts a dividend yield of nearly 6%.

Source: Motley Fool

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