When examining a stock's dividend yield you need to go behind the numbers. A fantastic dividend yield on the surface may be masking some significant underlying issues. The dividend yield is simply a calculation that compares the annual dividend distribution to the current price per share. The dividend yield can look artificially inflated if the stock price has taken a recent hit; that's why investors need to examine the fundamentals of the company first and look at the dividend yield later.
There are a number of companies out there with prodigious yields that for one reason or another - challenging economic conditions or poor company-specific performance - warrant caution. Chasing the dividend in any one of these stocks could end up leaving you with a loss on your investment: AT&T (T), Southern Company (SO) and Apollo Residential Mortgage (AMTG).
Source: Seeking Alpha
Related Articles:
- 6 Dividend Growth Stocks With Very Little Debt
- What Determines A Dividend Stock's Yield
- Warren Buffett's Secret To 50% Returns
- 9 High-Yield Energy Stocks Growing Their Dividends
- 6 Stocks With a Sustainable Dividend
Stocks With Solid Dividends That You Should Approach With Caution
Posted by D4L | Monday, December 16, 2013 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
If you're worried about inflation rearing its ugly head next year, you should probably worry about more likely catastrophes, such as bei...
-
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...
-
When a company pays a dividend, it's a good thing for shareholders. When a company consistently pays a dividend every quarter, it's ...
-
If you've been holding back from investing in your future just because you don't have a lot of extra cash to spare, I've got gre...
-
If you are looking for high-yield dividend stocks that can beat the market, you might want to check out these three companies. They all have...
-
If you are here to build a portfolio that thrives in all seasons, consider dividend stocks. They can generate steady returns and provide sta...
-
My top financial goal is to eventually become financially independent. The foundation of my strategy is to make investments that produce an ...
-
One way to achieve financial freedom is to create passive income, or income that does not depend on your active involvement beyond a certain...
-
The company's remarkable consistency and low-risk business model make it a "first-choice investment opportunity," according to...
-
Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciations have contribut...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.