This High-Yield Dividend Stock Is Swimming in Cash
As a general rule, a high dividend yield is often a warning sign that a company is experiencing significant trouble of some kind. The market sees signs of trouble, starts selling off the stock, and that conversely inflates the yield. If a company's business has deteriorated to the point that a dividend cut might be necessary, the stock price will begin to figure in the possibility.
These stocks with dividend yields that look too good to be true are often best avoided. Often, but not always. Take Weyerhaeuser (NYSE: WY), for instance. It has an unusual dividend policy that makes its yield look inflated, but all is not as it appears and the current inflationary environment is actually one in which the company is best set to compete. Let me explain.
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Source Fool.com
