This Dividend Just Got Safer
Investors do love their dividends. But the cruel truth of the dividend investing game is: The higher the dividend yield, the more risky it is. As many novice investors find out, it's easy to get lured in by a juicy yield, only to have the company's operating metrics deteriorate, followed by a very painful dividend cut.
So when CenturyLink (NYSE: CTL) stock sold off after its recent earnings report, its dividend yield shot up to 11.4%, by virtue of the stock price going down. With a yield over 11%, the market is saying that hefty payout is in danger of being cut. However, CenturyLink just declared a $0.54 quarterly dividend (in line with previous payments). Moreover, on its recent third-quarter earnings call, management said that the dividend will be even safer than first thought -- at least this year.
Is management to be believed, or is that yield too good to be true?
...
https://finance.yahoo.com/news/dividend-...ccounter=1
Investors do love their dividends. But the cruel truth of the dividend investing game is: The higher the dividend yield, the more risky it is. As many novice investors find out, it's easy to get lured in by a juicy yield, only to have the company's operating metrics deteriorate, followed by a very painful dividend cut.
So when CenturyLink (NYSE: CTL) stock sold off after its recent earnings report, its dividend yield shot up to 11.4%, by virtue of the stock price going down. With a yield over 11%, the market is saying that hefty payout is in danger of being cut. However, CenturyLink just declared a $0.54 quarterly dividend (in line with previous payments). Moreover, on its recent third-quarter earnings call, management said that the dividend will be even safer than first thought -- at least this year.
Is management to be believed, or is that yield too good to be true?
...
https://finance.yahoo.com/news/dividend-...ccounter=1
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