Don’t chase super-high dividends
December 26th, 2008
If you pay attention to nothing else I’ve written here, please note this. Don’t chase super high dividends. How high is high? Like so much in life, that depends. I generally want at least a 3-4% dividend, and I am usually wary of a dividend over 10%. A super high dividend can be a sign that a company is in real trouble.
You must remember that dividends in general vary not only from one company to another, but also from industry to industry, and even from country to country. Therefore, many factors must be considered in determining a “good” dividend.