Don't Get Too Attached to Gilat Satellite Networks' Juicy Dividend

The perfect dividend stock offers more than just a beefy yield. The company's board of directors should also show a real commitment to keeping the payouts coming for many years, and it's even better if the dividends are being financed by a steadily growing stream of free cash flows. Based on those criteria, I'm afraid that income investors should walk away from Gilat Satellite Networks (NASDAQ: GILT).

This maker of satellite communications equipment is no ultra-reliable Dividend Aristocrat. The in-flight connectivity specialist sports a generous dividend yield of 7.8% today, but that's kind of a mirage.

Gilat has issued a grand total of three dividend payments so far and management has no clear-cut plans to distribute more.

Source Fool.com