Not all high yielding stocks are equal. Here's three that deserve second-thoughts
Too often, investors seem to ignore weak business fundamentals and uncertainty and cling to the hope of an “attractive” dividend pay-out when justifying a stock investment.
Three companies which look attractive are; Z Energy, Sky TV, and Fonterra Shareholders' Fund. But there are question marks around each one.
A recent example of a stock we have avoided and continue to avoid across our portfolios is Z Energy (ZEL). A number of brokers and fund managers have been holders and buyers of ZEL given its 8%+ dividend yield, which at face value is very attractive.
However, as we saw earlier this month, that dividend yield doesn’t provide much comfort when the share price falls by close to 20% after a profit downgrade and dividend cut.
Click the button below to subscribe and will have free unlimited access for a limited time to full article and all other articles on the site.
You will also be able to comment on articles on Good Returns.
