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Old 12-10-2008, 08:19 AM
  #3  
bamaboy473
Senior MemberCaptains Club Member
 
Join Date: Dec 2007
Posts: 15,655
Default Re: Why not settle for 20+% yield Dividends?

....hell yeah, but I'm a sucker for long blond hair and big funbags, too. Seriously, if the company (and it's dividend) were that sound, their stock price wouldn't be so depressed.

The reason dividend yields get out of sight is that investment types are pretty darned sure (think... Positive) that the company is going through a rough time from which it might not emerge. The first quick source of cash flow is dividend money; if a company is desperate for cash, then eliminating the dividend is a harsh but viable direction. Of course, news of a sliced dividend can result in the stock's price dropping from $10 to $1, so there's that.

Be careful betting against the investment bankers....they know more than we ever will.
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