The Undervalued Dividend Trap A recent report has highlighted eight stocks that seem like solid investments for those looking to diversify their portfolios with dividend paying assets.
However, beneath the surface lies a more complex reality that challenges the notion of "undervalued" and highlights the risks of investing in high yielding shares.
The criteria used to select these stocks are well established: price to book ratio below 2, price to earnings ratio below industry average, debt to equity ratio under 1, three year revenue growth above 15%, dividend yield over 1.