As an investor, it is vital to distinguish between attractive dividend-paying stocks and yield traps.
A yield trap occurs when a stock’s dividend yield appears attractive, primarily due to a declining share price, but the underlying business fundamentals are weak, at risk of earnings downgrades, and cannot sustain its dividend payments in the future. These companies are often financially unhealthy businesses with too much debt.
Download the report to find out which stocks have sustainable dividends and avoid the Yield Trap.
To discuss the future of your investments in detail, book in a free consultation with a Lincoln representative.
To discuss the future of your investments in detail, book in a free consultation with a Lincoln financial expert.