How realistic is the 10%+ dividend yield from this FTSE 250 stock? – Yahoo Finance UK

Investors often look for stocks with high dividend yields as a way to generate income. One FTSE 250 stock currently offering a dividend yield of 10% or more may seem like an attractive option. However, it’s important to question how realistic this high yield actually is.

High dividend yields can sometimes be a red flag, indicating that the stock price has fallen significantly. This could be due to poor company performance or other underlying issues. In some cases, a company may struggle to maintain such a high dividend payout over the long term.

Investors should also consider the sustainability of the dividend yield. A company with a high dividend yield may not have enough earnings to support such a payout. This could result in the company cutting or suspending its dividend in the future.

It’s important for investors to conduct thorough research and analysis before investing in a stock with a high dividend yield. While a 10%+ yield may be appealing, it’s crucial to assess the underlying fundamentals of the company to determine if the dividend yield is realistic and sustainable in the long run.