Making Cents Sense

When High Yield Turns into High Risk Every investor loves a fat dividend check. It’s the warm, fuzzy hug from your portfolio that says, “You made a good choice.” But what happens when that comforting check gets slashed in half—or disappears entirely? Welcome to the nightmare scenario of chasing high-yield dividend growers that were too good to be true. In 2025, more and more high-yield companies are finding themselves on the edge of financial cliffs. From rising interest rates to plummeting free cash flows, the red flags are waving and too many investors are hitting snooze. But make no mistake: dividend cuts aren’t just possible—they’re already happening. In this blog, we’re diving deep into: Why high yield can be a flashing red warning light The growing list of companies at risk Real-world examples of recent dividend cuts A framework for avoiding landmines and securing reliable income Safer high-yield alternatives still worth owning Because while income is great, ...

When it comes to investing for income, dividend stocks are often portrayed as the golden geese of the financial world. They’re supposed to lay regular income eggs, steadily and reliably. But what happens when the goose gets sick—or worse, dies? That’s the financial equivalent of a dividend disaster, and unfortunately, they happen far more often than many investors want to believe. If you're relying on dividend income for retirement or passive income, this isn't just an inconvenience—it’s a financial threat. You need to know which ticking time bombs to avoid before your portfolio becomes a smoldering crater of broken promises and slashed payouts. Let's explore how to sidestep some of the worst dividend disasters lurking in today's market. The False Promise of High Yield Let’s start with the biggest red flag waving in front of unsuspecting investors: a yield that's too good to be true . If you see a stock offering an 11% dividend yield while the S&P 500 averag...

Because Watching Your Income Shrivel is Not a Retirement Strategy There’s a special kind of heartbreak reserved for REIT investors when a juicy dividend starts to look… not so juicy. If you’ve been chasing yield like a Golden Retriever chasing a tennis ball, you might’ve found yourself with a few dividend duds in your portfolio. Today, we’re looking at three REITs that are waving more red flags than a bullfighting arena. These aren’t the sexy REITs you brag about on Reddit—they’re the kind you hope your friends don’t ask you about. So, let’s save you from future embarrassment—and potential capital losses—by spotlighting three REITs to sell before they gut their dividends like a fish on a Friday night fishing trip. Why Dividends Are the Lifeblood of REITs (and Why You Should Care) Let’s get one thing clear: REITs exist because of dividends. The IRS gives them a special tax exemption as long as they pay out 90% of taxable income to shareholders. That’s right—they’re legally obligat...