What are some of the risks associated with stock dividends?

Jeremy

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May 31, 2022
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What are some of the risks associated with stock dividends? Have you incurred any?
 

Maryline54

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Sep 10, 2022
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What are some of the risks associated with stock dividends? Have you incurred any?
There are several risks associated with stock dividends, but they depend on the company and your personal situation. Like for example, if you own a lot of shares in a company that is going through a tough time, the value of your shares could drop significantly. This is especially true if you don't have enough money saved up to weather any downturns in the market.

You also need to be careful because some companies will use their profits to pay out dividends instead of reinvesting that money into their business to grow and innovate. If this happens consistently over time, then it can hurt the company's long-term prospects by not allowing them to invest in things like new products or better technology.