2 Dangerous Double-Digit Dividends to Sell NOW

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One of the best characteristics about dividends is they usually offer a consistent, preferably growing stream of income. However, investors can easily fall into the trap of becoming complacent that future payments will continue to flow in, even when the business isn’t generating enough cash to fund the dividend.

The higher the yield being offered generally means the riskier the dividend is and sometimes losses can outweigh the expected income. For example, Dynagas LNG Partners (DLNG) cut its 16% yield back in April and shares are down 24% since.

With government bonds paying around 2% to 3%, dividends above 10% need to be scrutinized closely and I’ve identified two that are in danger of disappearing.… Read more

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One of the best characteristics about dividends is they usually offer a consistent, preferably growing stream of income. However, investors can easily fall into the trap of becoming complacent that future payments will continue to flow in, even when the business isn’t generating enough cash to fund the dividend.

The higher the yield being offered generally means the riskier the dividend is and sometimes losses can outweigh the expected income. For example, Dynagas LNG Partners (DLNG) cut its 16% yield back in April and shares are down 25% since.

With government bonds paying around 2% to 3%, dividends above 10% need to be scrutinized closely and I’ve identified two that are in danger of disappearing.…
Read more

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When most investors hear about a momentum stock, they expect to see a chart with multiple zig-zagging trend lines. However, I believe the trend can also be your friend with fundamental data and help individuals find potential winning investments.

Price momentum is important for traders looking to make a quick hit in days or weeks, but fundamental momentum can help investors generate a steady and growing amount of dividend income over a period of years.

The key for any stock that pays a dividend is the underlying profit that supports the payout each period. Investors have historically rewarded companies that consistently exceed (or surprise) expectations and higher earnings can lead to higher future dividends.…
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About Author

Brett

Hi, I’m Brett Owens – and I’m a financial junkie. My “problem” started incollege, when I got a little dose of the stock market – man, was I hooked…in no time, I was reading the Wall Street Journal religously.

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