Sometimes investors are easily attracted to high dividend yields and they immediately add those stocks to compliment their income portfolios. The fallacy in such a strategy is that the full story behind the stock is often not explored. There could be many different reasons why some companies currently support substantial dividend yields, and these reasons must be analyzed prior to purchasing a stock.
Rather than just looking at the dividend value, investors must take other quantitative and qualitative factors into consideration to determine if the yield is sustainable. Companies that have an unreasonable payout ratio may turn out to be a good investment if their situation improves. However, investors must look beyond just the dividend. (These five qualitative measures allow investors to draw conclusions about a corporation that are not apparent on the balance sheet.
Source: Investopedia
Related Articles:
- Don't Touch These 5 Dividend Stocks!
- 3 Dividend Stocks That I Will NEVER Lose Money On
- List of 195 Dividend Stocks Every Income Investor Should Know About
- These 11 Dividend Stocks Could Make You Wealthy
- 13 Dividend Stocks Headed In The Right Direction
________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
Long-term investors know that dividends can have a major impact on returns over time. When the stock market is struggling to make gains like...
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
We decided to go on a hunt for quality stocks that for one reason or another have been buried, and not just this year. We found three incred...
-
Buy and hold ... forever? It's a tall order, but a select few companies are potentially up to the task. You can build a wealth-compoundi...
-
Does the high interest rate environment we're living in have you feeling down? Here's something to remember that can help you turn t...
-
Essentially, we’re looking for more Apples – tech firms with a large market cap (at least $1-billion) and the financial means necessary to p...
-
Dividend stocks can be consistent market-beaters. However, empirical research shows that the best dividend stocks tend to generate better-th...
-
High-quality dividend stocks are always worth loading up on. This is doubly true for companies that offer shareholders an attractive mix of ...
-
Numerous high-quality dividend opportunities are up for grabs at the moment, which may be appealing to some investors given the uncertainty ...
-
Some dividend-paying companies have seen their financials struggle over the years. These companies become vulnerable to dividend cuts which ...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.