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Jim Cramer: CenturyLink's Slashed Dividend Is Hardly a Big Surprise
The moral of the CTL story? Never reach for outsized yield, as there is a good chance you will get burned.
Reaching for yield is one of the dumbest things a person can do. If a dividend produces a yield that's well in excess of what's out there in the marketplace, you should be skeptical of that payout and question whether it is sustainable, rather than being opportunistic and believing you may have a real bargain on your hands.
Thus, we have the cautionary tale of CenturyLink (CTL) , the hodgepodge of a telecommunications company that last night cut its dividend, despite the fact that management had stood by it in previous presentations -- and some very good analysts believed the company would continue to support it, too.
...
https://realmoney.thestreet.com/investin...yptr=yahoo
The moral of the CTL story? Never reach for outsized yield, as there is a good chance you will get burned.
Reaching for yield is one of the dumbest things a person can do. If a dividend produces a yield that's well in excess of what's out there in the marketplace, you should be skeptical of that payout and question whether it is sustainable, rather than being opportunistic and believing you may have a real bargain on your hands.
Thus, we have the cautionary tale of CenturyLink (CTL) , the hodgepodge of a telecommunications company that last night cut its dividend, despite the fact that management had stood by it in previous presentations -- and some very good analysts believed the company would continue to support it, too.
...
https://realmoney.thestreet.com/investin...yptr=yahoo
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