Monthly Dividend Stocks Are Manipulating You

Income investors, recognizing how much the joy of a stable cash flow can improve their lives, often press their luck in trying to find the point at which point you can have too much of a good thing.

There are two areas where the abandonment of common sense can get an income investor into trouble: (1) one, if he ignores warning signs about a potential investment’s current profitability and outlook in search of dividend yields that are above 5%, or (2) he is drawn to the idea that he can better regulate his lifestyle and investing desires by loading up on stocks that make a monthly deposit into one’s bank account each month.

The problem with investing in stocks that pay dividends monthly is that, more often than not, the lure of dividends is being used as an enticement to prop up the share price of a stock that would Read the rest of this article!