Do you think the yield on a dividend stock is indicative of its overall health?

Alex_BM

Member
Sep 10, 2022
108
0
16
Do you think the yield on a dividend stock is indicative of its overall health?
 

Sam007

Member
Sep 14, 2022
77
0
6
Yes, I think the yield on a dividend stock is indicative of its overall health. A company that pays out dividends is essentially saying, "We have enough money to pay our shareholders, and we don't have any better use for it." That's a pretty good indication that the company is doing well.

I can also see how this applies to real life situations: if you were looking for an investment opportunity, but you couldn't find anything with a strong yield, would you consider investing in that company? No! You'd want to find something that was doing well and paying out dividends so you could get more bang for your buck.