Confession of a Die-Hard Dividend Fan: “Dividend Yields Mean Nothing”

A stock’s current yield holds an almost untouchable place in most investors’ minds. But here’s the thing: it’s lying to you. My take: you’re much better off going by a company’s shareholder yield, which tells the full story on the payout we get. Shareholder what? We’ll get into exactly what shareholder yield means for us in a second. But we first need to look at how going by a stock’s current yield alone can steer you into a ditch. Lumen Technologies Shows How a High Yield Can Be a Trap … Consider regional telecom operator Lumen Technologies (LUMN), which we discussed last week in our third article on my proven “Dividend Magnet” investing strategy .… Read more