Playing the yield
May 08, 2019
2 minutes
STORY MARK STORY
At face value, the higher the dividend a stock pays the better it is. After all, it means more money is paid to you as a dividend cheque or more shares are distributed to you by way of a dividend reinvestment scheme.
But where investors often come unstuck is in assuming that a dividend of, say, 6% is indicative of a company’s future earnings (or yield), when
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