Just because a dividend increases, doesn’t mean your investment is any better. On the Prudent Investment thread, malfred wrote that he likes Southern Copper, bec. of its 9% dividend yield. History is full of companies which paid a high dividend despite their depreciating values; ponzi schemes also pay dividends; so a dividend doesn’t mean anything if my principal is eroding. Copper is in a huge bubble; I wouldn’t touch it with a 10foot pole.
Be careful of anything paying more than risk free (Treasury bills). The more it pays, the higher the risk.
Some investors are earning 10% on second deed trusts, not realizing that by next year, their principal will have evaporated. So just be careful out there with high paying dividend yields. They could very well be taking the dividend out of your principal.
