Opinion: Pfizer's Dividend Is Riskier Than You Might Think
A 7% dividend yield will grab your attention, but be sure to read the fine print.
Overview
It's hard not to love high dividend yields. Who doesn't want more dividends for their money? Pfizer (NYSE: PFE) and its current yield of 7% will certainly grab your attention.
But remember that the company sets the dividend amount, and the market sets the stock's yield. A yield as high as Pfizer's can be a warning that Wall Street sees problems and trades the stock at a price that reflects those risks.
Details
The problem for investors is that it's difficult to see any obvious red flags in Pfizer's dividend -- right now. Here's why it's far riskier than it might look.
Source
Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.