Buy Hold Sell, by Livewire Markets
Business:Investing
Everyone loves a bargain. It's why Boxing Day sales are such a riot, or why my car salesman father tries to haggle nearly everything he buys. But as in life, sometimes a deal (or yield in this case) is too good to be true.
Dividend traps occur when investors (like you, my dear reader), are lured in by a high dividend yield before realising the underlying company isn't all it is cracked up to be. Particularly now with inflation running so hot, it's easy to see why alluringly high yields would catch an investor's eye.
However, if a company's share price continues to plummet, or it turns out the company can't pay the dividend it promised - that seductive dividend yield will turn into a trap.
In this episode, Livewire's Ally Selby is joined by Wheelhouse Partners' Alastair MacLeod and Plato Investment Management's Dr Don Hamson for their analysis of three stocks with sky-high yields that could just be dividend traps.
And for a little bit of positivity, we also asked our fundies to each name one stock with a dividend yield you can actually trust.
Now, that's what I call value for money.
Note: This episode was filmed on Wednesday 26th October 2022. You can read an edited transcript below:
https://www.livewiremarkets.com/wires/buy-hold-sell-3-dividend-traps-and-2-you-can-trust
Buy Hold Sell: 5 small stocks with big catalysts on the horizon
2 undiscovered stocks (and how to analyse under-the-radar companies)
Buy Hold Sell: 3 under-the-radar stocks (and 2 overcrowded darlings)
Buy Hold Sell: Demand wave to power future-facing commodities (and 4 stocks to ride the wave)
4 undiscovered gems as gold prices hit record highs
Is there still upside to uranium? (and 4 stocks fundies are buying)
The stocks headed for the ASX 20 (and 2 on the way out)
Buy Hold Sell: 3 stocks ready for a rebound (and 2 due for a sell-off)
Buy Hold Sell: 5 undervalued founder-led stocks
10 adviser-approved ETFs for 2024
Answering the internet's most common ETF questions
Buy Hold Sell: Your top-tipped ETFs for 2024
Buy Hold Sell: 5 of the ASX's fastest-growing stocks
How to invest in small and micro-caps (and 4 emerging stocks for the next 5 years)
Buy Hold Sell: 5 small stocks headed for large-cap status
Buy Hold Sell: 3 stocks with dividends on the rise (and 2 on the chopping block)
How to generate passive income in 2024
Buy Hold Sell: 5 stocks with monster dividends in 2024
Buy Hold Sell: Your 5 top small and mid-cap stocks for 2024 (and 2 big fundie buys)
6 stocks for a full portfolio reset in 2024
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