Ares Commercial Real Estate Corporation (NYSE:ACRE) Q1 2024 Earnings Call Transcript insidermonkey.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from insidermonkey.com Daily Mail and Mail on Sunday newspapers.
A yield trap is a stock that presently pays a very attractive dividend yield but is likely to have to cut its dividend soon. Beginning investors often make the mistake of choosing stocks simply based on high dividend yields, but often these are yield traps at high risk for cutting the dividend. When dividends are cut, the investor receives the double whammy of a price drop and a smaller dividend. Investors can reduce the risk of buying a yield trap by focusing on two key factors — the relationsh