Yield Trap: Navigating the Risks of High Yield Dividend Stocks

This episode explores the hidden risks behind high-yield dividend stocks. While big yields may seem appealing to investors, they can often signal deeper issues like declining stock prices, excessive debt, or unstable management. Paul and Kyle explain how dividend yields are calculated and why a rising yield can be misleading if it's the result of a falling stock price. Real-world cases, such as AT&T and Walgreens, illustrate how chasing high dividends can lead to unexpected cuts and losses. Ultimately, the episode encourages thoughtful research over yield-chasing.

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