DiscoverThe Canadian InvestorWhy Chasing High Yielding Dividend Stocks Rarely Pays Off
Why Chasing High Yielding Dividend Stocks Rarely Pays Off

Why Chasing High Yielding Dividend Stocks Rarely Pays Off

Update: 2025-09-15
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In this episode, we go over yield traps and why abnormally high dividends often signal business stress rather than easy income. We walk through how falling share prices inflate trailing yields, why payout ratios and free cash flow coverage matter, how special dividends can skew TTM yields, and when sector “norms” turn into red flags. 

To make things easier to spot, we do a sector by sector overview of what is considered a normal yield and what is considered a high and likely unsustainable dividend yield.

Tickers of stocks/ETFs discussed:
UPS, FDX, BCE.TO, T.TO, T , VZ, DIS, NFLX, WBD, FOXA, NWSA, GOOGL, CNR.TO , TFII.TO, PFE, LLY, IBM, AQN.TO, FTS.TO, IFC.TO, SU.TO, CNQ.TO, XOM, FNV.TO, WPM.TO, TOU.TO, AP.UN.TO, MMM, QQQ, QYLD.

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Why Chasing High Yielding Dividend Stocks Rarely Pays Off

Why Chasing High Yielding Dividend Stocks Rarely Pays Off

Braden Dennis & Simon Belanger