Newbies Investing Questions

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Rarely discussed: "High Dividend Yield Stock Scams"

"It is easy for investors to be lured by stocks with tantalizingly high dividend yields. Running a stock screen could produce multiple high-yielders that look great on the surface, but later turn out to burn investors with dividend cuts.

"To be sure, these are not companies operating fraudulent business models. Instead, these are stocks that are “scams” in that they look appealing on the surface due to their high dividend yields, but are actually quite risky because their dividends are unsustainable."

Red Flag #1: Dividend Yield Exceeds 10%

Red Flag #2: Excessive Debt Burden

Red Flag #3: Dividend Payout Ratio Above 100%

https://www.lazymanandmoney.com/how-to-avoid-high-dividend-yield-stock-scams/