Serious Trouble Hides Behind These Eye-Popping Yields

Sure, it’s easy to let your eyes melt as you pore through lists of stocks with high dividend yields. But as they say, there’s probably more to the story. More often than most investors might realize (until it’s too late), those high yields are on borrowed time, and/or are being paid by a cash flow that won’t exist in the future.

Here’s a closer look at four stocks that might have huge payouts, but still wave enough red flags to keep investors from initiating a position: PDL BioPharma (NASDAQ:PDLI) Yield: 8.9%, Penn West Petroleum (NYSE:PWE) Yield: 10.1%, Pitney Bowes (NYSE:PBI) Yield: 12.5% and Two Harbors Investment (NYSE:TWO) Yield: 17.7%.

Source: InvestorPlace

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