Don't Get Tricked by These 3 Stocks With Deceptively High Dividend Yields
Income investors and retirees love stocks that pay high dividends. However, it's not quite as simple as running a screener to identify the stocks with the best dividend yields. Investors need to understand how much cash flow they should expect in the future and whether or not a company's distributions are sustainable.
Here are three stocks that have recently cut their dividends while dealing with a challenging operating environment. That action actually ended up making their trailing dividend yields rise and, as a result, created the misleading idea that these companies have great dividends. Let's explore why these deceptively high dividend yields may be tricking investors.
Energy Transfer LP (NYSE: ET) a master limited partnership (MLP) that owns and operates a large and diversified set of midstream energy assets related to the transportation, storage, refinement, and production of crude oil and natural gas. MLPs are structured as a tax-advantaged business that provides high amounts of cash flow to shareholders. They're popular in midstream energy companies because of the relatively predictable and stable nature of midstream operations, compared to other companies in this sector.
Source Fool.com
