What does it mean when a stock has an extremely big dividend yield like 20%?
funny thing I just finished watching a documentary about them and reading their wiki, lol
desperate
>>1249456
lol so funny lmao! xDDD
>>1249461
So they're heading towards almost certain bankruptcy?
>>1249475
not necessarily bankruptcy but definitely tough times. as a rule of thumb you should avoid all obvious too-good-to-be-true "bargains". the risk/reward is never in your favor
>>1249451
Think about out this way (one of many ways), a firm should have better things (ideas) to invest in than give the money to shareholders. If they are giving back "too much" money to shareholders it's a pretty good signal that they have nothing better to do with the money currently.
>>1249451
That they are going to cut the divided or fund it with debt.
>>1249520
Could it also mean they're gutting the company internally to make those payouts happen?
>>1249463
retard
>>1249451
It means the stock price dropped off since the last dividend payment. Sometimes I wonder if you guys even trade stocks
>>1250455
Indeed.
What the market values a company at right now, does not mean that that's what the company is worth.
Price is what you pay, value is what you get.
With Enron, i guess you could assume most people are not looking favourably upon it given the scale of fuckuppery it went through earlier, which could cause them to undervalue it..
it means you should look at who else has their money (13d) in it
statistically speaking high dividends is a warning sign of a bad stock. only a absolute bear market years high dividend stocks outperform anything
>>1249451
Generally yield skyrockets like that because there are significant issues with the company.
Although sometimes a special dividend won't be accounted for correctly on the financial websites (i.e. yearly yield is 4x special dividend) and thus they show an artificially large yield.
