That's because sky -
high dividend yields often indicate that the market views the dividend as unreliable.
Not exact matches
Because a falling stock price typically represents poor business fundamentals, a company with a temporarily
high yield is
often a company that is about to cut its
dividend.
High -
dividend stocks such as utilities and phone companies fell; those stocks are
often compared to bonds and they tend to fall when bond
yields rise, as
higher bond
yields make the stocks less appealing to investors seeking income.
Stocks with a history of consistently growing their
dividends have historically tended to perform well and exhibit less volatility in a rising rate environment, while
high yielding dividends,
often considered «bond - like proxies,» have tended to be more vulnerable (due to their
high debt levels) and have historically followed bond performance when rates rise.
This can be a mistake as
high yields often indicate something inherently wrong with the company in general, as well as a potentially unsustainable
dividend.
Often dividend growth companies with
high yields have slow growth rates, and vice-versa.
By purchasing these companies after a price decline, we find we are able to control risk in the portfolio as these investments
often have less downside while offering a decent potential return.The U.S. Equity Fund seeks to invest in companies with a lower Price to Book Ratio, lower Price to Earnings Ratio and
higher Dividend Yield than the S&P 500 index.
The»70s had many people buying stocks with
high yields,
dividends often exceeding what earnings could deliver.
Other investments are
often touted as a substitute for
high - quality bonds, including
dividend stocks, preferred shares, real estate investment trusts (REITs) and
high -
yield bonds.
They are
often characterized by low price - to - earnings or price - to - book ratios and sometimes by
higher than average
dividend yields.
Realty Income's current
yield of 4.8 % puts it in a
higher -
yield category than we
often see in
dividend growth stocks.
An exceptionally
high dividend yield is
often a sign of financial distress... and a sign that
dividend cuts are a lot more likely than
dividend hikes.
Be skeptical of the
highest -
yielding stocks because they're
often at risk of a
dividend cut.
The rest of the S&P's
highest - paying
dividend stocks
yield 5.6 % or less — but their
yields are
often more sustainable.
Overall, this enables MLPs to offer attractive income
yields (
often substantially
higher than the average
dividend yield of equities).
Dividend investors tend to look for
high yielding stocks and
often use an index as a way to determine what is actually
high and what is low.
Generally avoid stocks with the
highest yields because
often that indicates the
dividend is at risk and growth prospects are low.
While Canadian
dividends are
often touted as tax - friendly income, our analysis showed that
higher yields also mean
higher taxes.
Since MLPs do not pay any income taxes and pay out almost all of their cash flow in the form of cash distributions (their equivalent of corporate
dividends), MLPs»
dividend yields are
often higher than corporate
dividend payers.
The
dividend yield on
high yield stocks is
often the only return investors will see.
A common question we
often hear is «what are the
high yield dividend aristocrats?»
However, as most of us know,
high yields often serve as a warning sign about a company's health and
dividend safety.
I still advise avoiding the very
highest yielding dividend stocks from these income - oriented categories, since outliers are more
often than not outlying for a reason.
Many income investors focus on
dividend growth over current
yield since a very
high yield is
often a sign of a future
dividend decrease or lack of growth, whereas a long trend of sustained increases forces capital appreciation as well as the market continues to adjust for an ever - increasing
dividend payout.
So it only makes sense that, with
dividend yields these days
often substantially
higher than interest rates on fixed - income securities, it might be preferable in some cases to put
dividend stocks inside the RRSP, not outside.
According to data released last summer by Mellon Capital, the realized
dividend yield of
high -
yield S&P 500
dividend stocks between 1996 and 2015 was
often much lower than investors expected.
Because a falling stock price typically represents poor business fundamentals, a company with a temporarily
high yield is
often a company that is about to cut its
dividend.
Often dividend growth companies with
high yields have slow growth rates, and vice-versa.
Firms with very
high dividend yields are
often sending out distress signals.
Foreign companies
often pay
higher dividend yields than their U.S. counterparts, some countries like China and Russia «encourage» companies to pay out more in
dividends to help stimulate the economy.
Value stocks
often have
high dividends compared to their stock price (
yields).
Dividend yields are generally moderately high, but dividend growth is often rat
Dividend yields are generally moderately
high, but
dividend growth is often rat
dividend growth is
often rather low.
As such, they
often have
high dividend yields and low
dividend growth.