High yields aren’t everything. Yes, finding stocks with 10%+ yields can be very enticing, and in some cases, it's sustainable. But time and again, I’ve seen such companies fall from their highs, and, in many cases, cut the dividend. Slavik Kolesnik, a Portfolio Manager at Leader Capital, has noticed the same thing.
“It’s not a hard rule,” Kolesnik says, “but in many cases, stocks with high yields go down, and stocks with low yields go up. Yeah, I mean, you want to pay attention to the yield, but it can be a red flag as well.”
