Dividend Cut Alert! Three 12% Payouts In Big Danger
August 18, 2016 at 06:00 AM EDT
Double-digit yields are seductive – but like sirens coaxing Odysseus’s men from the deep, they can also lead the unwary to disaster. And with more reliable dividend payers yielding less and less in this red-hot stock market, the call from those sirens is getting louder and louder. Here’s why you should plug your ears and stay the course. One particularly popular dividend payer, Prospect Capital Corporation (PSEC) , has many red flags. Currently yielding 12%, it beckons investors to come and get $10 per month for every $1,000 invested. The fact that it’s a monthly payer makes it look even more attractive, and that’s helped the stock perform well for 2016: A Rare Bull Run for PSEC ... Read more