Investing
Dividend Risks Inflating
July 17, 2012 6:30 am
Last Updated: April 27, 2020 8:18 pm
The good news is that if you have been in these high-yield stocks for some time and seen massive appreciation, you probably will not feel much of a sting, even if the dividend bubble pops or slowly deflates. These companies paying the safer high yields are great companies with long track records. Many of these companies may even be able to keep raising their dividends. The other good news is that a dividend bubble would not at all look like a dot-come bubble bursting, as we saw from 2000 to 2003.
24/7 Wall St. has been tracking this trend of dividend investing for some time. The concern is over the price that new investors are paying to chase after these high dividends. At some point the payouts are just not enough reward for the amount of risk, and that is what we are starting to see today in many sectors and in many key stocks. A lot of these companies will be able to maintain their dividends or grow them, but with the economy softening up, a prudent investor should be asking how high of a price should be paid with new funds.
Sponsored: Tips for Investing
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.