IanTHughes wrote:BullDog wrote:IanTHughes wrote:moorfield wrote:Funnily enough Moneyweek magazine also has a piece on dividend investing this week.
I can't find a URL link, but here is one line, page 15. My bold.A high yield is often a warning sign - markets don't like to hand out free money, and if a yield is much higher than the market average, it often signifies scepticism about a company's ability to pay it.
Also from Moneyweek, an interesting article with regard to the 12.3% yield of Persimmon (PSN)
https://moneyweek.com/investments/stock ... mon-sharesThe company’s growth suggests cash returns will continueBased on these factors, I’m pretty confident that Persimmon can hit the City’s dividend targets for the next year or two at least. After that, it’s a bit harder to tell where the property market will go and if demand will fall. Nonetheless, for the time being at least, the fundamentals for the business appear strong.
I challenge you - If that yield is not a measure of risk, then please tell us on Monday morning you invested all your money into Persimmon shares. If you don't do this then I am afraid you blow your entire argument out of the water.
I never said there was no risk!
If you must respond to my posts, please respond to what I actually write!
Ian
Neither did I. The high yield at Persimmon is a measure of risk that the market feels is there in the business. You assert that the high yield is not a sign of high risk. You have written pages saying so.
If the market didn't see the higher risk at Persimmon then the share price would be far higher today and arbitrage that yield away. But according to you, the high yield at Persimmon is not a warning of heightened risk.
You can't have your cake and eat it. Either you put all your money into Persimmon shares or you think doing so it too risky. Which is it?