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@kewur 5 months ago

Three Stocks with Dividend Yields Over 9%—But Read the Fine Print

Three Stocks with Dividend Yields Over 9%—But Read the Fine Print

The S&P 500's dividend yield is near a record low, but a few stocks are offering massive payouts. AGNC Investment (AGNC) leads with a 14.4% yield by investing in agency-backed mortgage securities, but carries significant risk and a history of dividend cuts when conditions worsen. LyondellBasell Industries (LYB) yields 10.5% and has increased payouts for 15 years, but could face cuts if market headwinds persist despite efforts to improve cash flow. Delek Logistics Partners (DKL) sits at 9.8%, with 50 straight quarters of growth—though, again, high yield comes with higher risk. Investors drawn to these outsized dividends should keep these risk factors in mind.
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@BrianHoward 5 months ago

Law of averages. If a company is providing outsized dividends despite such situations, it has to be at the cost of something, right?

@AntonioMyers 5 months ago

Dividend cuts in declining conditions is a very valid thing. I would not mind that. That also goes to show that in the blooming conditions it will rise back up, too.