Danger Lurks for These 3 High-Yield Dividend Stocks
Dividend stocks are often an attractive investment since they can generate a lot of recurring cash flow for your portfolio. However, if investors simply look for stocks with the highest yields and don't do their due diligence on those companies, they could be taking on a big risk and end up on the losing end of an investment when the unsustainable dividend payouts get cut.
Let's take a look at three stocks that are currently high-yield dividend plays that you should think twice about investing in.
Vermilion Energy (NYSE: VET) is a Canadian oil and gas producer currently paying its shareholders a whopping 13.9% yield on its annual dividend. It's hard to imagine that a payout like that can be sustainable, but management says it has no plans, at least for now, to make any changes to it.
Source Fool.com
