Yield Traps Vs. Income Kings: Harsh Reality Of High-Dividend Stocks

For income-focused investors, a 10% dividend yield can be very attractive, but such high yields often signal significant underlying risk.AGNC stock is moving. See the chart and price action here. The Dividend TrapA yield becomes a “trap” when the high percentage is caused by a collapsing stock price rather than a growing business.Read Next: Top 10 Most Shorted Stocks: Lucid, MARA, Hims and More Payout Ratio: If a company pays out more than 100% of its earnings, it is cannibalizing its own capital to maintai ...