If a stock can pay itself off in a little over a year from dividends alone it seems like quite a good deal to me.
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Advice on stocks with high div yields?
I’m just learning about stocks and I noticed that some have dividend yields are over 20%… In cases like these is it typical that the stock price dropped and the upcoming dividends will be much less than the ttm?
jeff410 5:07 pm on March 2, 2010
Some companies like royalty trusts and real estate investment trusts have to pay out 90 percent of their earnings to shareholders. That way the company isnt taxed. So, they typically have high yields. But for other companies that typically have high yields it means high risk. The dividend could be cut and/or the stock may drop steeply.
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