Cautions on Big-Dividend Payers

Run a Bing or Google search on those five words and you’ll get more than enough warnings to make you wonder if big dividends ought to be avoided. Examples:

• A company with uncertain cash flows may skip or cut dividends to investors when operating capital runs short.

• Mining companies and transport manufacturers can be uncertain sources of dividends.

• Well-established companies tend to be more dependable income resources than start-up ventures.

Those cautionary bits of advice are from Todd Gilbey at:

http://toddgilbey.wordpress.com/2013/05/28/are-your-stocks-paying-big-dividends-look-out-for-the-warning-signs/

At yCharts, you’ll find that giant dividends can be a warning sign. See:

http://ycharts.com/analysis/story/giant_dividends_warning_sign_or_icing_on_the_cake

Yahoo, too, has a warning: 3 Warning Signs of a Dangerous Dividend. See:

http://finance.yahoo.com/news/3-warning-signs-dangerous-dividend-180000924.html

Now, let’s take a fun break with Gangnam dance videos:

http://www.youtube.com/user/officialpsy?feature=watch

Never forget this: All investments and savings are gambles on the unknowable future and thus subject to loss as well as gain.

Do visit my website for lots more research I share with do-it-yourself portfolio managers:

http://balliettinvestor.blogspot.com