The Most Dangerous Dividends for 2017

The stock market’s up, which means yields are down. And while there are still some generous payers available, be careful – entire sectors are paper tigers that will probably suffer this year. Two weeks ago, we discussed the best 7%+ dividends for 2017 . Today we’ll talk about the big dividends that should be avoided, or sold altogether. Mortgage REITs (mREITs) for starters tend to drop their dividends over time – and these cuts accelerate when rates rise. Profits plummet because their portfolios (typically made up of fixed-rate issues) decline in value as rates run higher. We’ve discussed the benefits of buying dividend growth at length. Why would you ever want to do the opposite and purchase these “falling payout knives”? mREIT Dividends Race to the Bottom ... Read more