Part 4/9:
Unusually High Dividend Yield: A dividend yield significantly surpassing those of its peers, especially in sectors not known for high yields, could be a cause for concern. For instance, a telecom company yielding over 8% might deserve further scrutiny compared to its competitors showing 4-6% yields.
Excessive Debt: A high debt-to-equity ratio indicates increased risk. An excessive level of debt suggests a company may struggle to cover obligations if market conditions sour. Investors should compare this ratio not just within the company but across its industry.