Generally speaking, double-digit dividend yields are indeed too good to be true. They are often either being paid by unstable companies, or simply represent too much of a company's earnings to be sustainable.Of course, there are some exceptions. There are a few questions you should ask yourself to help you avoid dividend yield traps, which is a common term for stocks with too-good-to-be-true dividends.
Comment on Ask a Fool: Is a 10% Dividend Yield Too Good to Be True?
newsfeedback@fool.com (Matthew Frankel), The Motley Fool
Fri, 07/13/2018 - 9:00am
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