Account Info
Log Out
English
Back
Log in to access Online Inquiry
Back to the Top
Trading ideas
Views 1.1M Contents 475

I would look for dividends cut

A company reducing the size of its dividend is a sure sign that things are not going well. Companies set their payout ratio at a level they are fairly certain they can afford. If they must reduce the dividend it means profits are under pressure and things are not going according to plan. Earnings will probably come under pressure and the lower yield will make the stock less attractive to investors. Both will probably lead to a much lower stock price.
Stocks with high dividend yields may appear attractive to income investors. What really matters, though, is how sustainable the dividend yield is. A stock with a lower yield than the prevailing interest rate can turn into a good investment if the dividend is sustainable and grows gradually over time. This gives you the benefit of both compound interest and capital gains.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only. Read more
4
+0
Translate
Report
40K Views
Comment
Sign in to post a comment
    learn and working hard
    4Followers
    8Following
    281Visitors
    Follow