From a piece today in the NYT.
Carol J. Emerson, 65, sees herself as particularly vulnerable. Her annual income of $50,000 comes almost entirely from dividends, and she says she is worried that as her stocks decline, some of those dividends will fall, too.
âIf I were guaranteed that the dividend would remain unchanged, I could ignore that the underlying value of my stocks has eroded,â she said. âBut that is not the way it works. If the value of the stocks doesnât go up again, there are not a lot of companies that can keep on paying a 16 percent dividend.â
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Now, you know some sleazeball put her into stocks, collected the commission, and told her she was in it for income. Dividends are good. Nice dividends.
The biggest fraud in investing is the high yield play.
Carol J. Emerson, 65, sees herself as particularly vulnerable. Her annual income of $50,000 comes almost entirely from dividends, and she says she is worried that as her stocks decline, some of those dividends will fall, too.
âIf I were guaranteed that the dividend would remain unchanged, I could ignore that the underlying value of my stocks has eroded,â she said. âBut that is not the way it works. If the value of the stocks doesnât go up again, there are not a lot of companies that can keep on paying a 16 percent dividend.â
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Now, you know some sleazeball put her into stocks, collected the commission, and told her she was in it for income. Dividends are good. Nice dividends.
The biggest fraud in investing is the high yield play.