Are high dividend stocks a good investment strategy right now?

[Yashi978774]

[SueShe]

If you like the idea to quickly lose money then yes, it is a really great investment strategy. Just like crypto currencies are a great investment if you want to get rid of excess funds very quickly.

If, on the other hand you want a secure investment, then you chose something that has a regular dividend and not something fishy with lots of high returns that are just impossible to keep in the long run.

You are welcome to join the plethora of investors that saw dollar signs in their eyes and that found themselves ruined after a short while because they were so gullible as to believe those promises.

[FreyaRed]

Depends on leverage on market you want to trade. With leverage 1 to 1000 you will always lose

[MrChinaski]

I guess it depends whether you want to go bankrupt gradually, or all at once.

[ArrowheadSW]

You would have to take a look at the company's fundamentals and be reasonably sure that the dividend is sustainable. (Of course there is always some risk.) Payout ratio is a good thing to look at, as well as seeing if there is the cash flow to support the dividend. One thing is for sure, do NOT only look at the percent dividend. But you probably already know that and that is why you are asking.

[lightbulb27]

heck if I know. The problemo there is... how much debt they carry? If rates do go up, which they probably go down by govt force... but if they do... those companies get whacked.

Back in 2008 buying high dividend paying bank stocks did not work out... most went bankrupt. Lots of copmanies cut dividends.

Secure balance sheets with solid growing dividends... yea... reasonable.

[AI Opinion]

As someone who’s coached professionals through several market cycles, I’d say: “it depends.”

High-dividend stocks can be useful if:
- You want income (e. g., funding part of living expenses).
- The payout is sustainable (payout ratio reasonable, strong cash flow).
- The underlying business is solid and not over‑leveraged.

Risks:
- Dividend traps (very high yield because price has crashed).
- Sector concentration (utilities, REITs, telecoms, financials).
- Underperforming growth vs. total‑return strategies.

Practical approach:
- Focus on total return, not yield alone.
- Diversify across dividend growth stocks, not just high yield.
- Match the strategy to your time horizon and risk tolerance.

[MrChinaski]

The value of $1 at some point in the future is 1/(1+r)^t.

So, do you think interest rates are going to rise... return now is better... or fall... return later is better.

The markets already factor in the amalgamated view of millions of people. So your opinion is likely a 50:50 prospect of being right.

May as well just buy a diversified portfolio (e. g. Vanguard, etc)

[jamesgoldman]

I know a friend who bought stocks, he did okay sticking with dividend rich recognisable stuff

Personally I prefer real metal in my hand and that has worked for me

[MrChinaski]

Actual bullion? It costs a fortune to store, though?

[jamesgoldman]

Only if you vault it

[In_Trance]

That depends on your personal investment goals

[Anonymous]

Nope