Updated: September 26, 2016
Today I need to warn you about a common mistake I’ve seen burn investors over and over. I’ll also show you 3 bargain dividend growth stocks that are great buys for your retirement portfolio now; more on those in a moment.
First, the mistake.
It’s called “reaching for yield” and its latest victims are investors who bought SeaWorld Entertainment (SEAS) based solely on the stock’s 6.5% dividend yield.
Too bad that high yield was because everyone else saw the company’s problems—falling revenue and shrinking operating margins as the public soured on SeaWorld’s killer-whale shows—coming from a mile away … and jumped overboard. In the 6 months prior to the announcement, the stock sunk 39%!
That drove its dividend yield way up (because you calculate yield by dividing the annual dividend by the current share price)—setting up a dangerous “yield trap” ready to spring on the unwary: …