High Dividend, High Risk: 4 High-Yield Stocks We No Longer Trust
TM Editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.
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In this video, we break down 4 risky, high-yield stocks you should avoid at all costs — especially if you're investing for retirement or passive income. These are the dividend traps that look attractive on the surface but could devastate your portfolio over time.
00:23:41
Timestamps:
- 00:00 - Intro: 4 Risky Companies to Avoid
- 00:37 - Welcome to the Wide Moat Show
- 01:00 - This Week’s Topic: Speculation & Chasing Yield
- 02:47 - The Hidden Dangers of Chasing High Yield
- 03:43 - Understanding Risk: Lessons from Real Estate & Investing
- 05:01 - Frank J. Williams on Speculation & Market Lessons
- 06:38 - The Myth of Risk-Free Passive Income
- 07:59 - Why Double-Digit Yields Are Often a Red Flag
- 08:29 - Risk Profile Explained: BDCs vs. Blue Chips
- 09:31 - Stock #1: Sachem Capital (SACH) Breakdown
- 11:01 - Defaults, Dividend Cuts & Management Concerns
- 12:53 - Stock #2: Annaly Capital (NLY) Breakdown
- 14:32 - Chronic Dividend Cuts & Extreme Leverage
- 16:17 - The Dangers of Ignoring Yield on Cost
- 17:24 - Stock #3: Innovative Industrial Properties (IIPR)
- 18:59 - Once a Winner, Now at Risk of a Dividend Cut
- 20:28 - Why Even "Safe" Stocks Require Monitoring
- 21:44 - The Safe Alternative: Realty Income (O)
- 22:45 - Avoiding the Agony of Dividend Collapse
- 23:37 - Preview of Next Week: Safe High-Yield Stocks & Options
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Note: This video contains promotional/advertising material.
Brad Thomas is the Editor of the Forbes Real Estate Investor.
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Ayelet Wolf
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1 month ago
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Member's comment
Why is $O being compared with 10%+ divis?
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Bill Johnson
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1 month ago
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Member's comment
Although you are correct about the danger of chasing yield,
Which mREIT is safer than $NLY?
Between NLY and RITM (NRZ) my capital has decreased by 32% over the past 9 + years but if you include the divvies i have earned about 140% in income.
Unless the companies are in danger of going out of business, I don't see the risk, and yes both NLY and RITM has cut the divvy especially Ritm Substancial (50%)
Yet they are keep laying eggs.
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