One Of These Dividend Stocks Is Trash, The Other A 7% Yielding Treasure

One Of These Dividend Stocks Is Trash, The Other A 7% Yielding Treasure

Posted On November 15, 2022 7:14 am

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.

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About author

Dividend Sensei

I'm an Army veteran and former energy dividend writer for The Motley Fool. I'm a proud co-founder of Wide Moat Research, Dividend Kings, and the Intelligent Dividend Investor. My work can be found on Seeking Alpha, Dividend Kings, iREIT, and the Intelligent Dividend Investor. My goal is to help all people learn how to harness the awesome power of dividend growth investing to achieve their financial dreams and enrich their lives. With 24 years of investing experience, I've learned what works and more importantly, what doesn't, when it comes to building long-term wealth and income streams and achieving long-term financial goals.

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