3 Metrics to Use to Avoid Falling for Dividend Traps

Investors looking for passive investment income generally rely on dividend-paying stocks. However, it's important for investors not to equate a high dividend yield with a good investment. Dividend traps are companies with high dividend yields but generally underwhelming financials and business fundamentals. As an investor, you want to make sure the companies you're investing in can sustain their dividends for the long term.

Here are three metrics you can use to help you avoid falling into a dividend trap.

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Source Fool.com