Stay Away! 3 Dividend Stocks That Are Yield Traps
Good dividend stocks can create long-term wealth through solid earnings growth, consistent dividend hikes, and the "magic" of compounding. Meanwhile, bad dividend stocks lure in investors with big yields, then cut their payouts as their stocks stumble.
Investors can spot high-yield traps with three red flags -- an oversized yield, deteriorating earnings growth, and payout ratios (the percentage of a company's earnings or free cash flow spent on dividends) exceeding 100%. Here are three bad dividend stocks that tick those boxes: CenturyLink (NYSE: CTL), National CineMedia (NASDAQ: NCMI), and Abercrombie & Fitch (NYSE: ANF).
Image source: Getty Images.
Source: Fool.com
Lumen Technologies Inc. Aktie
1,22 €
2,26 %
Ausgeglichene Community-Meinungen bei Lumen Technologies Inc. mit einer gleichen Anzahl von Buy- und Sell-Einschätzungen.
Die Community prognostiziert für Lumen Technologies Inc. ein Kursziel von 7 €, was den aktuellen Kurs von 1.22 € weit übertrifft.
