Stay Away! This Dividend Stock Is a Yield Trap

GameStop (NYSE: GME) serves a valuable retail niche, trades at only six times earnings, and offers a tantalizing 7.5% dividend yield. Sounds appealing, doesn't it?

Unfortunately, in the words of gamer favorite Admiral Ackbar, it's a trap!

GameStop is facing the disruption of its core business, making the long-term sustainability of its earnings and dividend questionable at best. Its shares have come under pressure in recent years, as investors' concerns regarding its future prospects have intensified. Yet more pain may lie ahead. In fact, here are three reasons why investors may want to stay well clear of GameStop's stock.

Source: Fool.com