Stock Investment Discussion Forums  

Go Back   Stock Investment Discussion Forums > Stock/Investment Discussion > General Investment Discussion
Register FAQ Members List Calendar Search Today's Posts Mark Forums Read

Thread Tools Search this Thread Display Modes
Old 04-17-2011, 08:14 PM
idiotstockinvestor idiotstockinvestor is offline
Join Date: Oct 2010
Posts: 120
Default Avoiding the Dividend Trap

This article basically makes the case that you have to be careful not to buy stocks just for the dividends. I thought the mainstream media was all about dividends just a few months ago, saying they are proven over time to produce more wealth?

I agree with their merits though, don't look at dividends alone, and if anything see how their dividends changed during the 2008 market crash.

I now keep in mind that dividends are nothing compared to the growth of a stock. A good and stable company means nothing if the stock has become so devalued that you've lost so much and can't sell.

This happened to me with CHL, China Mobile. Their dividends are strong, the company will never go bankrupt, but I've still lost over 20% as the stock crashed shortly after a selloff by Vodafone. If the stock price does not recover quickly, it will take years before I break even.
Reply With Quote

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump

All times are GMT. The time now is 06:58 AM.