As a dividend-focused investor I'm always on the lookout for high yield shares, whether that yield is high relative to the market average or high relative to the company's peers. However, as most yield-seeking investors soon discover, high yield stocks do not always deliver the yield you were hoping for. That's because dividends can be cut or even completely suspended, and the higher the historic or forecast yield the more likely that is to happen. This is the dreaded yield trap, where investors are lured in by an attractive yield and then stung with a capital loss when the dividend is cut.
Like you, I want to avoid this fate wherever possible and so over the years I've built up a series of tests which every potential investment must pass before I'll invest so much as a penny. These tests do not have any magical power to spot yield traps with 100% accuracy, but I do think companies that can pass these tests are far less likely to cut or suspend their dividends than those that fail to pass them.
by Zak Mir| Trading| 1 mins. to read There is not too much historical data to go by on the daily chart of Convatec (LON:CTEC), but enough for early bird chartists to make a decent call on a possible extended rally.
by Evil Knievil| Evil Diaries| 3 mins. to read Long term savers get tax deduction when setting aside sums in a pension fund. HMG is determined that the saver cannot have his money without paying tax on withdrawals.
Jim will be presenting at an Investor evening hosted by Turner Pope Investments (TPI) Ltd. The event will be held on Wednesday 5th April in the City of London, EC4 and will commence at 5pm. To register your interested please contact Neill Elloy at neill@turnerpope.com or call him on 0203 621 4121. Whoever wants to attend needs to register for the event as space is limited.
by Zak Mir | Trading | 1 mins. to read There is not too much historical data to go by on the daily chart of Convatec (LON:CTEC), but enough for early bird chartists to make a decent call.
by Victor Hill | Brexit | 10 mins. to read Ready. Aim. Fire! The notorious Article 50 of the Treaty of Lisbon (2007) was "triggered" by the United Kingdom last night when Prime Minister May signed off a historic letter to Donald Tusk, President of the European Council.
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