8.6% Yield? Here’s the Dividend Trap to Avoid in February

8.6% Yield? Here’s the Dividend Trap to Avoid in February

An 8.6% yield can look like a free lunch in February. It can also be a warning label. When you judge a dividend stock, ignore the hype and follow the cash. Ask three things: can it fund the payout after necessary spending, can it refinance debt without pain, and can it defend its pricing power? A dividend that depends on borrowing or constant share issuance turns “income” into a slow leak. The goal is not the biggest yield. The goal is the m…