Danger Lurks in These 3 High-Yield Dividend Stocks

The allure of high-dividend yields is endlessly enticing, but often, high-dividend stocks come with higher-than-anticipated risks. In a bid to help identify high-dividend-paying companies that may stumble, we asked three Motley Fool analysts which companies they think may pose a danger to portfolios. Read on to learn which three worry them.

Leo Sun: PetMed Express (NASDAQ: PETS), which is known as 1-800-PetMeds, is an online pet pharmacy. Its forward annual dividend yield of 5% certainly looks tempting, but the numbers don't add up. George Budwell: PDL BioPharma, (NASDAQ: PDLI) looks like a screaming buy based on its 7.43% dividend yield, and a rock bottom forward price-to-earnings ratio of 3.7. Brian Orelli: With a dividend yield above 5%, GlaxoSmithKline (NYSE: GSK) tops the list of big pharma dividends by a wide margin. While the dividend looks attractive, investors should be careful.

Source: Motley Fool

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