Dividend Investors Beware: 3 Yield Traps Masquerading as Bargains
LEGLeggett & Platt(LEG) InvestorPlace·2024-04-20 04:26

High-yield stocks often catch the eye of investors due to the seemingly significant, tangible returns on investment. Yet, not all that glitters is gold. In fact, it’s often the case that many names offering outsized yields are attached to a number of risks. Some mask such lurking risks beneath their attractive yields, these are known as dividend yield traps.A yield trap occurs when a stock’s dividend appears enticingly high, often above the industry average or historical norms. Yet, what one can initially p ...