Article Abstract:
High yields may be abandoned at a time when capital gains appear easy to achieve, but it has become cheap to invest for income, and capital gains can be lost. Many stocks offering high yields are respectable companies. Investors are seeking fashionable new economy firms rather than old economy firms that pay the large sums they earn as dividends. Even blue chip stocks like Unilever have seen stock price falls. Some high yield stocks may see a cut in dividends, and investors should assess whether this is the case.
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Article Abstract:
Stocks can be selected by sector, and most stocks will perform well if the sector that they are in is performing well. Banks and mobile phone companies have performed well, while retailers have performed poorly. It may be difficult to be as confident about a sector as it is to be confident about a company. Poor allocation decisions can lead to benefits from stock selection being undermined. Investment companies may find stock selection more difficult when they have attracted large amounts of money to manage.
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Article Abstract:
BTG and Trafficmaster have both performed well after recommendations had been made to sell them, though there is no guarantee that price rises will continue. There is little incentive to be involved in adventures when there is concern about what could occur on the stock market. Zero-dividend preference stocks represent low risk investments. They can be included in United Kingdom personal equity plans (Peps), though the tax advantages that Peps offer were meant to be in exchange for taking risks.
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