Few stocks have a dividend yield of 15% or more. And when they do, the dividend has usually already been cut drastically or suspended altogether.
For example, I recently sorted my stock screen by dividend yield and I got Provident Financial and Capita at the top, with dividend yields of 20% and 17% respectively.
In both cases the dividend has now been suspended, so the actual dividend yield that investors will receive (at least in the short-term) has quickly fallen to zero.
However, there is a third company on my stock screen which has a dividend yield exceeding 15%.
That company is Connect Group, the UK’s largest news wholesaler and leading deliverer of newspapers and magazines to almost 30,000 retailers.
So far at least, there has been no mention of a dividend cut or suspension, which is surprising.
Never one to ignore a potential bargain, I decided to take a closer look at Connect Group and do a full review for this month’s Master Investor magazine:
Can a 15% dividend yield ever be sustainable?
And speaking of Master Investor, their annual event for investors will be in London on 17th March. You can find out more about the show here.