Extreme dividend yields are often a sign of deeply rooted issues in the company and business model behind the dividend-paying stock. For some investors, that's a deal-breaker. For others, it's a call to action. Some of those troubled businesses could come back swinging, unlocking a spring-loaded turnaround play -- and you can still enjoy sky-high effective yields on the low buy-in prices you locked up. High dividend yields can be signs of deep-rooted trouble -- or of a turnaround story in the making. These generous dividends belong in the latter group...
How can you tell the strong turnaround ideas apart from truly doomed underperformers, where the high yields really are red flags? That's the question we posed to a panel of dividend investors here at The Motley Fool, asking them to share some insights that could save ordinary investors from yield-hunting heartbreak. Read on to see why they would recommend taking a second look at Seagate Technology (NASDAQ:STX), GameStop (NYSE:GME), and Medley Capital (NYSE:MCC). All of these companies have their issues, but they also seem poised to make a strong comeback.
Source: Motley Fool
Related Articles:
- 6 Rainy Day Dividend Stocks
- With Dividend Growth Stocks, Cash Is King
- When A Stock Fails To Raise Its Dividend: Is It Time To Sell?
- Dividend Stocks in Today's Market
- 5 Big-Name Dividend Stocks Crushing The S&P 500
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
Many investors search for safe, dividend-paying stocks. As John D. Rockefeller once said: "Do you know the only thing that gives me ple...
-
With interest rates near zero, many investors are turning to dividend stocks for income. And for some investors, the higher the yield, the b...
-
Utility stocks have been relatively volatile in the recent past. However, most utility stocks have a low beta and have a stable cash flow vi...
-
The rollout of fifth-generation network services, also known as 5G, enhances the appeal of each of these three dividend-paying, 5G technolog...
-
Before you go ahead and fill your portfolio with dividend stocks, it would be prudent to check out their market capitalizations as well. Sev...
-
This company yields 12.96%. Management already declared the regular and special September dividends. Its portfolio companies are holding up ...
-
Dividend stocks have fallen out of fashion during the pandemic. With interest rates at rock-bottom levels, investors have fled from assets l...
-
With interest rates stuck below 1%, finding income in today's market can be difficult. Therefore it makes sense for income investors to ...
-
The two dividend-paying technology stocks to consider boosted sales significantly, according to their latest quarterly financial reports, ev...
-
There are 65 so-called “dividend aristocrats,” which is the name given to companies that have managed to increase their dividends for 25 con...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.