Dear Reader, Not all dividend stocks are created equal. In fact, I’d go so far as to say there’s a ‘right’ and ‘wrong’ kind of dividend stock on the market. And it might surprise you to learn that the ones offering the biggest yields may not deliver the long-term stability you’re dreaming of. I explain why here. In short, just because a stock is making news for big payouts, doesn’t automatically make it a great investment. Take Cromwell Property Group [ASX:CMW], for example. It currently pays a juicy yield of 14.75%. All well and good. But take a look again and you’ll see that the stock has plummeted 43% over the past year. That means if you’d sunk $10,000 into it 12 months ago — dreaming of that big dividend payout — it would be worth just $5,644 today. Ouch. The idea of regular income loses its appeal when you’re burning through your capital just holding on to a dividend stock for 12 months. This is the problem with chasing yield alone. There are better choices out there. In fact, I share six of them here. These firms get less limelight… Not because they aren’t great companies…or because they don’t pay healthy, consistent dividends. They just don’t top the dividend charts in terms of yields. However, in my analysis, they are all deeply undervalued — giving you the chance to get paid twice — with regular dividends and capital growth. Click here to learn more. Regards, Greg Canavan, Editorial Director, Fat Tail Investment Research |