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
On the hunt for tomorrow’s CSL
Buy Hold Sell: 5 emerging healthcare heroes
Buy Hold Sell: 5 stocks rallying hard
The secrets to picking a winning small cap (and 2 fundie favourites)
Buy Hold Sell: 5 stocks with fantastic fundamentals
Buy Hold Sell: 5 ASX stocks for the ”goldilocks” scenario
How to find the highest quality large-cap stocks on the ASX
Buy Hold Sell: 5 large-cap stocks with rock-solid balance sheets
Buy Hold Sell: How bad will the fixed-rate mortgage cliff be (and 2 stocks that could still benefit)
Buy Hold Sell: Why energy stocks are cheaper than they’ve been in years (and 2 stocks on the rise)
Buy Hold Sell: 2 big tech buys and the fundies debate the sector’s next steps
3 dividend darlings (and 2 with adviser approval)
6 adviser-approved funds for income (and 2 to rid from your portfolio)
The 2023 guide to income for investors of all ages
Buy Hold Sell: 5 stocks for your radar right now
2 stocks fundies would bet the house on
Buy Hold Sell: 5 boring stocks trading at beautiful prices
Buy Hold Sell: 5 long-term compounders for the bottom drawer
2 stocks facing headwinds (and the themes fundies are shorting in 2023)
Buy Hold Sell: 3 of the ASX’s most shorted stocks (and 2 long-term buys)
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