CJREF - 4 Reasons To Own This Hated 6% Canadian Dividend Stock
Every investor who chases high yields gets burned by a dividend cut at some point. Hopefully it's a rare occurrence as it tends to be very painful. If you've followed my work, you know that I value dividend safety; in fact, two of my four basic principles deal with dividend cuts.
- Dividend cuts are bad when they happen
- Dividend cuts are bad before they happen
Neither of those are rocket science, but what is surprising is how important #2 is.
Consider this chart:
Source: Smartdividendstocks.com
In a few words, dividend stocks tend to get crushed