Is This Telecom Dividend Too Generous?
Regional telecom Lumen Technologies (NYSE: LUMN) offers one of the richest dividend yields among members of the S&P 500 index. Formerly known as CenturyLink, Lumen currently offers a dividend yield of 9.6%. Last week, Lumen announced another payout of $0.25 per share payable on Dec. 11.
Beefy dividend yields are good for your wallet, but only if the company can keep the payments coming over the long haul. Excessive yields can indicate difficult business trends as dividend yields soar for all the wrong reasons -- i.e., falling stock prices, not rising payouts. I'm afraid that Lumen fits that sad bill.
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Source Fool.com
