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RE: LeoThread 2025-07-01 12:43

in LeoFinance3 months ago

Part 2/9:

A dividend yield trap occurs when a stock offers a high dividend yield that appears attractive but is, in reality, underpinned by troubling fundamentals. As investors seek out high yields, they may overlook several critical factors that could indicate that a company's better days are behind it. In fact, high yields often signal underlying issues, including declining markets, excessive debt, or operational troubles within the business.

Why High Yields Are Attractive but Risky