Some companies borrow or use one-time profits to pay high dividends, which is unsustainable. Focus on stable payout ratios (40–70% by industry), avoid those with rising debt or declining profits, and ensure dividends come from recurring earnings.
Some companies borrow or use one-time profits to pay high dividends, which is unsustainable. Focus on stable payout ratios (40–70% by industry), avoid those with rising debt or declining profits, and ensure dividends come from recurring earnings.