From Miranda Maxwell:
…portfolio managers are increasingly warning against being lured by these dividend “traps”, which often don’t reflect the fundamentals of individual businesses and overall industries. While steadily falling share prices artificially inflate the yield, this risks a loss of capital if the price of the security falls further.
The banks and supermarket owners, which have outperformed for four years, are now being singled out as top victims of a cyclical change that is underway, putting the focus back on balance sheets and profit prospects rather than simply yield.
