High Dividend Stocks To Sell Right Now

| March 4, 2015

You’d be better off grabbing a beer Shiite Muslim Militia member than investing in one of these high dividend stocks.

But those guys don’t drink, do they?

Probably not.

And it’s safe to say terrorists aren’t a reliable source of dividend stocks research.

So let me introduce you to 3 terrorists of the dividend stock world… high dividend stocks that will make you wish you never met them.

Dividend stocks that are deadly.

Unpredictable, irrational, and no matter how you slice it, nothing but trouble.

I’m talking about dividend stocks that pay yields of more than 10%.

I’ll show you one from Russia that could send Vladimir Putin spiraling into a rage at any moment.

Another one is a finance company that’s been stung with a 400 million dollar lawsuit.

But before we shake down these dividend deadbeats, remember this.

You can use this same approach for yourself. You can use these exact same steps to keep your dividend stock investing profitable.

Deadly High Dividend Stock #1

Koss Corporation (KOSS)

Talk about a company that blew it, and missed an opportunity.

When everybody started blasting tunes on iPods and smartphones, KOSS should have been the dominant player with headphones.

After all, Koss has been in the headphone business since the early 1970s. Back then, audio headphones weren’t exactly mainstream.

The company stumbled into bankruptcy in 1984. It pulled through, but Koss has been struggling ever since.

Take a look at how roughed up the stock has been over the past year…

KOSS chart high dividend stocks

Koss puts out a quality product. But it’s been out marketed and outperformed by competitors like Bose.

It’s picked some bad partners. When you buy headphones at Radio Shack… if you can still find a Radio Shack that’s open… they’re made by Koss.

And Radio Shack is vanishing.

Koss isn’t making money.

All Koss is doing is scaring smart dividend stock investors to death with a 10% yield.

And trying to lure in the unsuspecting.

Deadly High Dividend Stock #2

Medley Capital Corp. (MCC)

You just want to groan when you see this. Definitely not one of your best dividend stocks, even with the tempting 13% yield.

Medley is a business development company (BDC). It’s been around since 2005.

The dividend payout ratio is 82%. For most companies, that would be dangerously high.

But because Medley is a BDC, it’s built to plow most earnings back into dividends, just like a Real Estate Investment Trust (REIT).

But here’s the problem. Medley cut its dividend in February 2015, and it’s still sky-high.

The chances of more cuts are pretty good. Medley’s got a nasty… and potentially expensive… lawsuit on its hands.

And with interest rates still low, it’s tough for Medley to make money.

Deadly High Dividend Stock #3

CTC Media Inc. (CTCM)

Why would anybody invest in a TV network?

They’re hideously expensive to run, and under competitive attack from every angle.

But the scariest thing about CTC Media isn’t the business it’s in. It’s the building it’s in.

This media company has an address that will make you shudder.

31A Leningradsky Prospekt
Moscow

If you can stomach the perils of owning a Russian company just to grab a fat yield, your courage is admirable. (The yield is 17.5% and the dividend payout ratio is 84.3%.)

Let’s hope Vladimir Putting doesn’t catch a show he doesn’t like on the CTC, or its networks Domashny, or Peretz.

And the financials?

Don’t even bother. The way the Russians cook the books, this stock is more at home on The Food Network than CNBC.

If you own this stock, you have my condolences. Dump it while the going’s good.

Have You Dodged These Grotesque Dividend Stocks?

Good.

You can stay focused on the best dividend paying stocks.

You can feel good about not chasing yield. When you look at yields over 10%, you’re looking for trouble.

There are plenty of good companies with strong management and strong financials. Just because they don’t pay a double-digit yield shouldn’t make them any less attractive.

There’s a reason why a good company like Apple (AAPL) pays a dividend yield of less than 2%.

How about Waste Management (WM) paying less than 3%?

There are scads of good companies paying a relatively low yield.

Which should make you wonder…

If a stock pays a dividend of more than 10%, how can it possibly be a decent company?

Take a pass. Safeguard your money.

Double-digit yields are nothing but trouble. Double trouble.

Regards,

Michael Jennings
Dividend Stocks Research

Note:  Michael Jennings writes and edits DividendStocksResearch.com. Sign up for our free dividend reports and dividend newsletter at http://www.dividendstocksresearch.com/free-sign-up. We’ll show you how to create regular income by investing in dividend stocks, easily, step-by-step.

 

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Category: Dividend Stocks

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Michael Jennings is the Editor of the Dividend Stock Research site. Dividend Stock Trading can be difficult. Michael Jennings provides you step by step guidance through the rough world of Dividend Investing.

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