High-Dividend Stocks To Sell Now

The attraction of high-dividend stocks is easy to understand. Not only do many stocks offer dividend yields which, by themselves, represent enviable market returns, but dividend-paying stocks offer as much possibility of capital appreciation as do growth stocks. While the capital appreciation of growth stocks may be more dramatic, many models have shown that investing in dividend stocks is more successful as a long-term strategy.

Particularly intriguing among high dividend stocks are those with very high dividends, which I will define as any stock with an annual dividend yield of 11% or greater. These stocks are a different sort of play from most dividend stocks, as they carry quite a bit of risk; a dividend yield that is too high usually signals trouble. In the case of the following five stocks, the yield is tempting, but we believe the risk to be in excess of the potential reward. Here are 5 to sell: Capital Product Partners (CPLP), QR Energy (QRE), Pitney Bowes (PBI), Armour Residential REIT (ARR) and Penn West Petroleum (PWE).

Source: Market Intelligence Center

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