fredag den 31. marts 2017

Do you know how to avoid yield traps?

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DAILY BULLETIN
Friday 31 March 2017
How to avoid yield traps – Part 1
by John Kingham | Equities | 8 mins. to read
Yield Traps
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.

 
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Did you miss Jim Mellon at the Master Investor Show, or would you like to hear more from him?

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.
 
Click here to register 

Convatec: 340p price channel target

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.
 
Click here to read the full story

An amicable divorce?

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.
 
Click here to read the full story
QUOTE OF THE DAY

"Facts do not cease to exist because they are ignored"
                                                Aldous Huxley
MASTER INVESTOR SHOW VIDEO EXCLUSIVE
Empowering Investors
LATEST EDITION OUT NOW

Fidelity's Tom Stevenson - Keeping the faith with markets
  • Money for nothing - Alan Steel explains the power of pensions
  • Oil majors go green - How the oil titans are adapting in the age of renewables
  • Making Mexico great again - Mexican stocks look good value after Trump's tirade
  • How to avoid yield traps - We explain how to navigate this common pitfall
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Click here to read online
 
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