Why Income Reliability Is Replacing Yield Chasing in 2026
Yahoo Finance·2026-02-23 17:32
The lesson here isn't that high yields are always bad, it's just that yield without content can be meaningless. A 9% yield from a well-structured covered call strategy backed by large-cap stocks is fundamentally different from a 9% yield propped up by a declining share price and a company that can't afford what it's paying out.This is what the market calls a yield trap, and 2025 produced plenty of them. Funds that screened for nothing but the highest-yielding stocks often held companies with deteriorating f ...