While sifting through this High Yield Dividend Stocks list, be sure to avoid
this dividend value trap.
Not exact matches
We assess the
value of
dividends in various interest rate environments over an 88 - year period and discuss how to avoid typical «yield
traps» in the design of high -
dividend strategies.
This factor can be what differentiates a
value stock from a
value trap, since a company in trouble usually cuts its
dividend payments.
I'd rather look back in 30 years and accept that I occasionally paid full price for my BMO shares, than look back at a host of
value traps I plowed by BMO
dividends into because I was «sure they are going to come back.»
Notes through April 18, 2006 Revisiting P / E10, Revisiting P / E10:
Dividends, NFB Closed, Links Repaired, The Big Project, Calculator D, Long - Term Stock Returns, My Most Recent Articles,
Dividend Calculators A and B,
Dividend Growth Sensitivity Study, Three Powerful Advantages of
Dividend Strategies, Calculator H, CTVR Calculator A,
Dividends and Constant Terminal
Value Rates, HCTVR Calculator A, May 2006 Highlights, Investment
Traps, Variable Terminal
Value Rate Calculator A, Variable Terminal
Value Rate Calculator B, Why People Ignore Valuations, Latching Calculators, Latched Threshold Survey, Investing for Dummy — The Six «Must Know» Rules, Early Success with Latch and Hold, Continued Success with Latch and Hold, Adding Constraints to Latch and Hold, Time To Catch Up Calculator Notes through June 12, 2006
Revisiting P / E10, Revisiting P / E10:
Dividends, NFB Closed, Links Repaired, The Big Project, Calculator D, Long - Term Stock Returns, My Most Recent Articles,
Dividend Calculators A and B,
Dividend Growth Sensitivity Study, Three Powerful Advantages of
Dividend Strategies, Calculator H, CTVR Calculator A,
Dividends and Constant Terminal
Value Rates, HCTVR Calculator A, May 2006 Highlights, Investment
Traps, Variable Terminal
Value Rate Calculator A, Variable Terminal
Value Rate Calculator B, Why People Ignore Valuations, Latching Calculators, Latched Threshold Survey, Investing for Dummy — The Six «Must Know» Rules, Early Success with Latch and Hold, Continued Success with Latch and Hold, Adding Constraints to Latch and Hold, Time To Catch Up Calculator Notes through June 12, 2006 The Lower Latch and Hold Threshold, Additional Constraints with Latch and Hold, Current Research I: Latch and Hold,
Dividend Investors, The Accumulation Stage, Idiot Switching, Latch and Hold Spreadsheet A, Typical
Values of P / E10, Growth with Switching, Special Note about Mean Reversion, No New Discovery This Time, Looking a Little Bit Harder, The Stock - Return Predictor, Calculator I. Notes starting June 13, 2006.
Do you ever feel like sometimes investing for
dividends can lead to
value traps.
Value traps — for purposes of investing — are defined as: «situations in which shareholder value exists but is never realized in the form of market appreciation in stock price to roughly equate with intrinsic value, dividends or legitimate share repurchases.&r
Value traps — for purposes of investing — are defined as: «situations in which shareholder
value exists but is never realized in the form of market appreciation in stock price to roughly equate with intrinsic value, dividends or legitimate share repurchases.&r
value exists but is never realized in the form of market appreciation in stock price to roughly equate with intrinsic
value, dividends or legitimate share repurchases.&r
value,
dividends or legitimate share repurchases.»
A
value trap can also occur when earnings or cash flow growth is falling, yet the
dividend yield is rising or remains elevated.
Companies with high
dividend yields can potentially offer very strong returns, but they can also lead to
value traps and
dividend implosions.