Dividend yields north of the 9% level should always be viewed with an extra dose of skepticism. That\u2019s not to say that all artificially high yields (or stocks that only have a high yield due to a crash in the share price, rather than by design) are a value trap that will ultimately end in tears for buyers once the inevitable dividend reduction comes in. But, at the same time, extra due diligence when it comes to the hard-hit, at-risk plays is a must since not all strategic turnarounds are met with a V- or U-shaped kind of recovery. <\/p>\n
Some stocks that have shed more than 40\u201360% of their value<\/a> might have a multi-year or even multi-decade slog ahead of them. And that\u2019s why it makes sense to be cautious, rather than overly greedy, when it comes to bottom-fishing for the fallen, seemingly cheap deep-value plays. In my very humble opinion, I think most of the trouble comes from the kinds of passive income investors who are only in it for the yield and couldn\u2019t care less about analyzing other aspects of the business.<\/p>\n Remember, just because you aren\u2019t in a stock for capital gains potential doesn\u2019t mean you should ignore the growth plan because, at the end of the day, the dividend\u2019s growth trajectory and health depend on the underlying business actually getting things back on track.<\/p>\n Source: Getty Images<\/p>\n Telus stock under pressure<\/p>\n![\"Woman](\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2026\/07\/plane-private-jet-business-headphones-earbuds-rich-business-wealth-luxury-1200x800.jpg\")
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