How to Avoid a Dividend Yield Trap – TR006

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Total Returns Podcast

Business


It's the biggest debate in income investing - high yield vs low yield. In this episode, I’ll share with you why you want to target high yields as long as they can afford those yields. You'll learn how to quickly determine if a company can afford to pay us... now and in the future. This Week’s Total Return: 32.78%. 20.73% capital gains + 12.05% income yield. In this episode, you’ll learn: What a high-yield is... and isn't.The weird, inverse relationship between share price and dividend yield.What a 'dividend trap' is and how to avoid that trip.What happens when a company can't afford its dividend anymore... looking at you, Gamestop.How dividends have performed historically since 1900 (spoiler alert: better than share prices!)The top 5 highest yielding investment strategies we use at the Income Investors.Two quick ways to determine if a company can afford to pay its high-yield now... and in the future. Links and Resources Mentioned in this Episode The Income Investors AcademyPersonal Capital Subscribe To & Review the Total Returns Podcast Thanks for tuning into this week’s episode of Total Returns! If the info and ideas have helped you in your financial journey, please head over to iTunes, subscribe to the show, and leave us an honest review. Your reviews and feedback will not only help us continue to deliver great, helpful content, but it will also help us reach even more amazing folks just like you!