Value trap is the costliest mistake income investors make. Let me show you how to avoid it.
There’s a certain magic in seeing money drip into your account every quarter, like clockwork. For many income investors, this is the dream.
And on paper, it makes perfect sense. Why not just go for the highest dividend yield and collect your returns, right?
But here’s the catch—some of these stocks are ticking time bombs. And that’s where the real danger lies. Because what looks like a 10% yield could cost you 50% of your capital.
This is what we call a value trap. And it’s the costliest mistake income investors make.
Let me show you how to avoid it.
The lure of high dividends
When you spot a stock throwing off an 8% or 10% yield, it feels like you’ve found gold. Especially when bank savings accounts are still paying peanuts.
But that’s how dividend traps work—they lure you in….
