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too big dividends

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Thread replies: 15
Thread images: 2

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What does it mean when a stock has an extremely big dividend yield like 20%?
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funny thing I just finished watching a documentary about them and reading their wiki, lol
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desperate
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>>1249456
lol so funny lmao! xDDD
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>>1249461
So they're heading towards almost certain bankruptcy?
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>>1249475
not necessarily bankruptcy but definitely tough times. as a rule of thumb you should avoid all obvious too-good-to-be-true "bargains". the risk/reward is never in your favor
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>>1249451

Think about out this way (one of many ways), a firm should have better things (ideas) to invest in than give the money to shareholders. If they are giving back "too much" money to shareholders it's a pretty good signal that they have nothing better to do with the money currently.
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>>1249451
That they are going to cut the divided or fund it with debt.
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>>1249520

Could it also mean they're gutting the company internally to make those payouts happen?
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>>1249463
retard
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>>1249451
It means the stock price dropped off since the last dividend payment. Sometimes I wonder if you guys even trade stocks
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>>1250455
Indeed.


What the market values a company at right now, does not mean that that's what the company is worth.

Price is what you pay, value is what you get.

With Enron, i guess you could assume most people are not looking favourably upon it given the scale of fuckuppery it went through earlier, which could cause them to undervalue it..
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it means you should look at who else has their money (13d) in it
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statistically speaking high dividends is a warning sign of a bad stock. only a absolute bear market years high dividend stocks outperform anything
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>>1249451
Generally yield skyrockets like that because there are significant issues with the company.

Although sometimes a special dividend won't be accounted for correctly on the financial websites (i.e. yearly yield is 4x special dividend) and thus they show an artificially large yield.
Thread posts: 15
Thread images: 2


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