In investing, as in the rest of life, there are generally driving forces behind events. When a stock gets sold off, for example, it's often for valid reasons. However, after investors bid down the value of a stock that pays dividends, others can get sucked in by a now enticing-looking yield, or a seemingly attractive P/E ratio. The average dividend yield of the S&P 500 at the moment is about 2.1%, so a stock that yields 4% might be expected to tempt income investors, as well as those looking to bet on a potential rebound.
Here are two such stocks yielding above 4%, but if you're considering buying them to await a comeback, think twice. And if you bought them awhile back and are holding on, hoping for a miracle, think three times -- the yield doesn't seem worth the risk: It's been one brutal year for those invested in The Gap Inc. (NYSE:GPS); its share price has been chopped nearly in half. Another company singing a similar tune is Avon Products (NYSE:AVP), which has shed roughly 85% of its value in the past half-decade, yet boasts a dividend yield of nearly 6%.
Source: Motley Fool
Related Articles:
- 5 Healthcare Stocks With Growing Dividends Yielding In Excess of 2%
- 3 Powerful Concepts for Compounding Wealth with Dividend Stocks
- Why We Are Dividend Growth Investors
- 5 Higher Yielding, Lower Risk Stocks To Perk Up Your Dividend Income
- 6 Dividend Growth Stocks With Very Little Debt
Dividend Growth Stocks News
- 3 Best Dividend Stocks, According to Analysts, 5/22/2025 - TipRanks - 5/22/2025
- 3 No-Brainer Dividend Stocks to Buy With $1,000 Right Now - The Motley Fool - 5/22/2025
- Highlighting Three Top Dividend Stocks - simplywall.st - 5/22/2025
- 3 High-Growth Dividend Stocks With Massive Upside Potential - MSN - 5/22/2025
- 3 No-Brainer Dividend Stocks to Buy With $1,000 Right Now - The Globe and Mail - 5/22/2025
- Automatic Data Processing Inc. (ADP) Dividend Stock Analysis - 5/16/2025
- Air Products and Chemicals Inc. (APD) Dividend Stock Analysis - 5/9/2025
- Waste Management, Inc. (WM) Dividend Stock Analysis - 5/2/2025
- Wal-Mart Stores, Inc. (WMT) Dividend Stock Analysis - 4/25/2025
- Abbott Laboratories (ABT) Dividend Stock Analysis - 4/18/2025
2 Dividend Stocks Yielding Above 4% -- That You Should Probably Sell
Posted by D4L | Wednesday, July 06, 2016 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.