My Portfolio & Connect: [ Ссылка ]

For long time viewers of my channel, you’ll likely recognize two high-yielding stocks that I cover from time to time, in which I criticize pretty heavily. The reason I do so is because these two investments are extremely popular with investors who are brand new to high-yieldber of people who are first starting out with income investing hold one of these two companies, and they all either lose money or significantly underperform, depending on when they bought their shares.  dividend investing. A good number of people who are first starting out with income investing hold one of these two companies, and they all either lose money or significantly underperform, depending on when they bought their shares. The first company is Armour Residential, ticker ARR. This 15% yielding stock pays monthly dividends, which attracts a lot of people who don’t go further with their analysis when they need to.

Some people don’t recognize the fact that its share price has dropped nearly 95% since their IPO, and they’ve gone through a dividend cut almost every year for a decade. Now some people will buy shares of ARR and claim they’ve made a good profit. But that’s only because there can be short periods where this stock is profitable. But if you wait long enough, history will repeat itself, and you’re likely to lose money with this stock. The second company I criticize often with a very similar pattern is Orchid Island, ticker ORC. Just like Armour Residential, Orchid Island is in the exact same mortgage business. They’ve lost a significant amount of shareholder value over time and have gone through almost as many dividend cuts as Armour has.

But there’s also another terrible high-yielding stock that pays monthly dividends that I’ve never recommended. I’ve known people who hold it for speculation purposes, in which I was a little more understanding because they hadn’t gone through quite as many dividend cuts as these other two companies. But last Friday some information came out on this company that I think could actually have legal consequences for them and their board members. Based on their latest earnings, it appears that some of the information this company was providing might have actually been misleading investors for a long time.

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