Dividend investing still offers opportunities, but investors need to look beyond high yields to find sustainable payouts and avoid costly dividend cuts.
Dividend cuts have been a major concern for income investors. It is easy to see why they dislike dividend reductions, suspensions, and eliminations. These changes mean less cash in investors’ pockets, which can be a problem for retirees who rely on dividends to cover living expenses. Dividend cuts also tend to put pressure on share prices.
Morningstar reported that the US stock market currently offers a relatively low dividend yield. The market’s overall yield is well below inflation and...
