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Court
| | Posted on Thursday, April 01, 2010 - 08:25 am: | 
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quote:Extremely high yield
A yield that seems too good to be true usually is. An extraordinarily high yield is tempting, but such yields tend to show up when a stock has been beaten down -- which means investors don't have confidence in it.
Before Harley-Davidson (NYSE: HOG) reduced its quarterly dividend from $0.33 to $0.10 last year, the stock was "yielding" 10%. And when yields are high and investors still aren't buying? It's worth considering why other investors are wary of those tantalizing yields.
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M2statz
| | Posted on Thursday, April 01, 2010 - 09:28 am: |
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Makes perfect sense to me! |
Glitch
| | Posted on Thursday, April 01, 2010 - 09:37 am: |
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Dividend payers aren't all gumdrops and rainbows, as shareholders of dividend-slashers First Horizon and Honda know all too well.
138 companies cut their dividends during the third quarter, the biggest quarterly decline since 1991, for a grand total of $22 billion in skipped payments. Fully 374 companies reduced their dividends in 2008. Their average performance during that time frame? Negative 57%. |
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