By: Dividend Sensei
In bear markets, almost everything is on sale, both world-class blue-chips and trash alike.
This dividend stock is a classic yield/value trap that’s been incinerating shareholder wealth for 23 years.
It is so fundamentally flawed that even at 2.9X cash flow I wouldn’t recommend it for my worst enemy.
It owns low quality assets, and pays management a hedge fund like 3% and 13% in fees, which is why investors have lost 69% of their money over 23 years, including dividends.
In contrast, this other high-yield stock is a 6.6% very safe yielding anti-bubble blue-chip that’s priced for -1.4% growth while it’s growing at 4.2%.
It could potentially double in two years, 2.5X in 5 years, and deliver market-beating long-term returns, just as it’s done for the last 28 years.