Daily dividend news for investors in dividend stocks

Avoid This High-Yielding Dividend Trap At All Costs

Published Fri, 23 Aug 2013 15:40:21 -0400 on Seeking Alpha

Everyone is always looking for a quick and easy way to wealth. This desire is what drives the multibillion-dollar worldwide gambling industry. Investment trends and fads are no different. Investors tend to move as a herd in and out of the latest get-rich-quick scheme. One of the most popular trends is the search for high-yielding stocks. This trend is driven by low bond and cash rates, risk fears stemming from the financial crash and recession, and the aging population seeking steady income from their investments. When managed wisely, yield investing is a proven method to help build wealth and generate income. The worst way to participate in this lucrative trend is to simply chase the highest-yielding stocks. In the yield-investing world, bigger is not always better. In fact, ultra-high-yielding stocks are often flashing danger signals -- because yield increases as the stock price decreases. It's critical for... Read more


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