High Dividend Yield Stocks?
How does the high yield came about?
1. The high yield came from the company paying 90% of its earning as stock dividends. With little retained earning, it is harder for the company to grow itself using internal resources.
2. The high yield came from the company paying out less than 60% of its earning as stock dividends. The company has retained some of its earning either as financial cushions or building up its internal resources for its future growth.
Do you prefer 1 or 2?
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