5 dangerously high dividends

These stocks pay tantalizing yields of more than 10 percent, but investors should approach them with caution.

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35Comments
Nov 26, 2013 9:44PM
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I've been long Prospect Capital for years. Even back when it was called Prospect Energy. It's been a steady money maker for all of that time and survived the Great Recession better than most companies.
Nov 27, 2013 3:05AM
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Chesapeake Grant Wash Trust is just that - a "Trust".  100% of the actual earnings assigned to the trust by the trust agreement are divided among the trust owners.  The earnings are totally independent of the current price of trust shares.  While there certainly are risks to a trust, there is no reason to worry about a high return rate indicating increased risk in the future because the payout ratio is always 1.0 and the coverage ratio is always 1.0.

Nov 27, 2013 12:15AM
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NLY will cut it's dividend to $0.28 or less when next quarters dividend is announced.
Dec 8, 2013 4:39PM
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Oil rig and headline dangerous...........No No your not a brainwashed zombie your just a democrat.
Nov 26, 2013 8:44PM
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Any dividend over 7% carries risk.  Over 10% is asking for it.   Unless the company does really well, you know something I don't, expect it to get cut and along with the share price.
Nov 26, 2013 8:13PM
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Hard to imagine a dividend "too high" ... but, I guess with enormous risk is could be "too high."
Nov 26, 2013 11:00PM
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Have to change subject a little but still relates to you, This is the only post MSN offers for me tonight, MSN posted a story in the news colum today about the Senkaku Island chain in which Japan claims is their property but now China is claiming this also and any country entering the airspace around these islands has to check in with China before doing so. MSN article written by Jim Miklaszew and Courteny Kube  under the news colum shows a pic of 2 B 52,s unarmed and flying into this new China airspace and says no reaction from China and they did not contact the U.S. military about this,  I am not surprised because their next step is to call up the U.S. Gov and they will warn our country that if you fly your b 52 planes over these islands again we  will dump the 4.5 trillion dollars of U. S. debt. Thus causeing the U. S. stock and bond markets to collapse, How did the United States dig oruselves into this hole?
Dec 2, 2013 5:03PM
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Sounds a lot like the housing boom of 2008 and you know that anything that goes up with a  BOOM  comes down as a BUST.
Nov 27, 2013 7:02PM
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"Poll finds unprecedented worry about job loss"

The working person doesn't trust this fake economy and the job blockaded person is obviously outside looking in. Those two groups ARE the economy so as long as it's about wages and stability, QE will remain a TOXIC influence until we collapse because of it. Kind of like throwing sand on a fire on a wooden boat. Too much sinks it, defeats the purpose and causes cataclysmic loss. Until scholars are banned and inheritors are jailed... we are on a runaway freight train heading down the sewer drain. I prefer we stop it in it's tracks give administrators the ax and restore competence so we get America standing tall again. Got a MBA degree? Go start your own enterprise and get off New World Order salary.  

Dec 8, 2013 11:57PM
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Take away the QE drug and what would things look like?

MrEnergyCzar
Nov 27, 2013 7:38AM
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"How did the United States dig oruselves into this hole?"


China played on our weak-minded skip-out-on-work generations. In exchange for the guts of American Ingenuity and Prosperity, they gave Inheritors some fake money and false sense of enterprise. They gave us- massive unemployment and a reliance on them for several necessities and our entire boutique lifestyle. As the pendulum swings it turns to provocative politics and cold war. We'll lose a third of our population because of psychopathy and another third will entrench, shift to craft, utility and industry and a third will grasp that paper and button pushing on salary is worse than Minimum Wage. Sadly it will all shake down very quickly. The markets are false. You needed to be in common element inventory, not bastions. The plastic rich will die broken because they chose to play bourgeois bigot instead of helping America through this shift period.  

Nov 27, 2013 11:05AM
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Chasing dividends is a waste of time and not the way to make money. In the Mother of All Bull Markets why would anyone bother with a paltry dividend? 

Tuesday the NASDAQ surpassed $4K! Do any of you know that the last time this was seen was 13 long years ago during the euphoria of dot.com? Do you also remember that it eventually topped out around $5K before the market collapsed!

Is this time different? You had better believe it is. By any metric, the NASDAQ is cheap. The same is true for the rest of the market. 

Next year the Mother of All Bull Markets will continue its great upward trajectory much to the consternation of all the forum morons. 

Yes I feel your pain poor little fellows, but remember the Salvation Army will be open during the holidays!

Yuk yuk!


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