Is this 12% US dividend stock too good to be true?

[Gargamel]

The fella in the video says that the dividend is secure and that there is no bankruptcy risk. Can anyone verify who is good with balance sheets? The company is Crown Crafts, CRWS.

[Rambone]

All you have to do is look at the 5 year chart and there’s your answer

[jude2]

12% dividend stock dose not look so good when the stock loses 50% of its value over 5 years and the market has almost doubled.

[BB]

Don't take advice from random youtube peeps, remember this man was a CFA offering financial advice for a while -

.

Generally abnormally high dividends = slow or no growth or a company taking heavy losses.

[NarcissisticDeity]

Ask Uncle Bernie

[deadz]

The fella in the video says that the dividend is secure and that there is no bankruptcy risk. Can anyone verify who is good with balance sheets? The company is Crown Crafts, CRWS.

Listening to Youtubers for financial advice

[Rambone]

Ask Uncle Bernie

Madoff, Sanders or Kosar?

Sounds like a law office full of winners

[NaturalWonder83]

Not all of us on this forum sit in front of 4 monitors day trading, have a Bloomberg Terminal, or understand how to read a company’s balance sheet.

Should we buy this stock? Or is it too good to be true?

[loco]

All you have to do is look at the 5 year chart and there’s your answer

12% dividend stock dose not look so good when the stock loses 50% of its value over 5 years and the market has almost doubled.

[delon]

Don't take advice from random youtube peeps, remember this man was a CFA offering financial advice for a while -

.

Generally abnormally high dividends = slow or no growth or a company taking heavy losses.

Spot on

Not all of us on this forum sit in front of 4 9 monitors day trading, have a Bloomberg Terminal, or understand how to read a company’s balance sheet.

Should we buy this stock? Or is it too good to be true?

[Brenda Steunbeer]

In my experience usually when a company offers an extremely percentage of dividend, the market thinks that is not sustainable.

So it is expected to be temporary, and most investors expect the dividend to be lowered substantially soon.

Then you are stuck with a poor performing stock, that offers little or no dividend.

I'm not a fan of dividend or stock buybacks, I consider both a waste of company money. They piss away billions, often even taking on substantial debt to do both. All for the "share holder" = speculators who buy on Tuesday and sell on Friday.
In reality such corrupt managers just want to increase the value of their stock options, so they abuse company money for a short term rise of the stock price.

I prefer a company with little debt, and that saves money for difficult times, so they can survive those, and will be able to do a takeover when prices are low.

Ever seen the stupidity of big oil stocks? They piss away billions each year in dividends and stock buybacks. Debt increases, then the oil and or natural gas prices collapse. And they don't have money for a take over. So they wait until their own stock price and revenue is high again, and do a takeover at a very high price.

In rare cases, as Berkshire does, buying back own stock can be done prudently. Buy big oil usually does not have money to buy back their own stock when their stock prices are extremely low, like during Covid.
So they wait until their stock prices have gone up 100 or 150%, and then buy back own stock.

Beyond retarded short term thinking imo.