Are there any stocks that you're avoiding right now because of their low yield?

Sam007

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Sep 14, 2022
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Are there any stocks that you're avoiding right now because of their low yield?
There are a few stocks that I'm avoiding right now because of their low yield, but the main reason is because they're not paying out much in dividends.

The first one is Tesla. It might seem like an obvious choice, but it's worth mentioning because it's a good example of how much investors care about dividends: when Tesla announced it was going to cut its dividend, shares dropped 6%. People were so worried about losing their income stream that they sold off their shares. And this was even before the company had announced any major layoffs or other changes to its business model.

The second stock I'd avoid would be Netflix. This one is interesting because it has such a high stock price ($370 at the time of writing), but its yield is just 1%. That means there's not much incentive for investors to buy up shares as an investment vehicle—they're more likely to view shares as a utility that provides an extra benefit (video streaming) rather than something they expect to make money from directly through dividends or price appreciation.