Be careful with conventional “wisdom”—especially when it comes to dividend investing. Some investors are so scared of a payout cut that they chase too-popular yields and watch their money grind sideways for years on end.
This safety trap is especially tempting in 2020, with dividend cuts happening left and right. We’ve had 639 publicly traded US companies reduce or eliminate their payouts in the second quarter alone, according to S&P Dow Jones Indices.
If you’ve been burned by a payout cut this year, the small consolation is you’re far from alone. Many folks were caught off guard when big names like Ford (F), Wells Fargo (WFC) and senior-care REIT Welltower (WELL) slashed or ceased their dividends.… Read more
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