Dividends4Life: 3 Tempting Dividend Stocks Investors Might Want to Avoid

Dividend investing has long been a haven for investors who want to receive a reliable stream of income rather than wait for capital gains to materialize. Having those dividends deposited in your account each quarter alleviates concerns that you might have to sell stock at the wrong moment in order to generate income. Instead, you keep on collecting dividends even when the market is down.

Unfortunately, investors sometimes forget that not all dividend stocks are created equal. As tempting as it may be to zero in on the yields offered by Guess?, (NYSE: GES), Darden Restaurants (NYSE: DRI), and Starwood Hotels and Resorts Worldwide, (NYSE: HOT), the business prospects of each company are uncertain enough to make them dangerous stocks to hold in conservative dividend portfolios.

Source: Motley Fool

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