Chasing high yields can be risky. Sometimes, yields look elevated because the stock price recently dropped sharply - which, depending on the reason for the drop, might mean you just bought into a loser.
Then, there are times when high yields are masking sky-high payout ratios, meaning they’re unsustainable for any prolonged period. In other cases, yields are boosted by one-off dividends that are unlikely to be repeated.
