The danger of a high yield that is, in fact, too high is that it may suggest the stock price has fallen dangerously low for a reason. Super-high-yield stocks whose prices have fallen precipitously because of some major problem within the company may herald that the yield is going to be cut back. The company may have liquidity problems. So here’s a look at the three stocks with the highest dividend yield to see if they are safe to invest in. Note that I exclude royalty trusts and shipping companies as these have special circumstances as securities...
Stage Stores Inc (NYSE:SSI) is a company I’ve never heard of, despite it having over 800 stores across 39 states. It has a direct-to-consumer business also, that operates under the brand names of Bealls, Goody’s, Palais Royal and Peebles (as well as Stage). I don’t see this dividend as sustainable. New York Mortgage Trust Inc (NASDAQ:NYMT) is an mREIT that invests in residential mortgage-backed securities, multifamily commercial mortgage-backed securities, and residential mortgage loans. NYMT trades at $6.37 and pays 96-cent-per-share per year, for an annualized yield of 15.1%. NYMT is trying to hold on to the idea of paying this high yield through a very expensive capital raise. TICC Capital Corp. (NASDAQ:TICC) is a Business Development Company. TICC trades at $7.32 and pays $1.16 per share, for a dividend yield of 15.9%, making it one of the top high-yield stocks in the market. I think we have a dividend cut coming.
Source: InvestorPlace
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- 5 Tech Stocks With A History of Growing Their Dividends
- 8 Dividend Stocks For The Ultimate In Deferred Gratification
- The Most Important Thing To Consider When Selecting A Dividend Stock
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