June 30, 2012

High Dividend Yield Shares Risky ?- Comments

I feel that shares that have a dividend yield of 10% or greater are usually distressed and very risky investments. An extremely high dividend yield can be viewed as evidence that the stock is under priced or that the company has fallen on hard times and future dividends will not be as high as previous ones.

 Similarly a low dividend yield can be considered evidence that the stock is overpriced or that future dividends might be higher.

asx dividends

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