Dividends4Life: Dangerous High-Yield Dividend Stocks

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Dangerous High-Yield Dividend Stocks

Posted by D4L | Thursday, April 03, 2014 | | 0 comments »

Dividend stocks are often most alluring when they are at their most dangerous. Sure, it’s hard resist dividend stocks yielding more than, say, 10%, but it’s critical that you know where that yield comes from. Crazy-high yields on dividend stocks are usually a sign of trouble — even for real-estate investment trusts, utilities and telecommunications companies that are supposed to sport fat yields.

There is no shortage of dividend stocks yielding more than 10% — a yield that’s essentially the same as a junk bond. We found more than 85 of them after running a simple screen, and many of them are large, legitimate companies — not unstable, speculative microcaps. But that doesn’t mean you should buy them. Here are five dividend stocks with dangerously high yields that you would do well to avoid: VimpelCom (VIP), Alto Palermo (APSA), Atlantic Power (AT), Centrais Elétricas Brasileiras Eletrobras (EBR) and Centrais Elétricas Brasileiras Eletrobras (EBR).

Source: InvestorPlace

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