A high dividend attracts every investor. Let's face it. But an extremely high dividend should make you wary. Even more so when it's as high as this company's. What causes it, what does it mean, and is it still profitable for investors?
OPI office properties trust $OPI is a real estate investment trust traded on the ASX in Australia. The trust invests in commercial property, primarily office space and retail centres in Australia. As at 31 December 2019, the trust had 29 properties in its portfolio valued at AUD3.9 billion. The Trust's portfolio is diversified in terms of asset type, location and tenants.
Now the main question - is it safe? The clear answer is no. There are many risks and especially "hidden" factors that inexperienced investors should be aware of with companies like this. Let's take a look at the general risks of high dividends.
Lack of investment funds for growth. Very high dividends can significantly deplete a company's financial resources and make it difficult to invest…
Is this extremely high dividend stock even safe anymore? Management made a huge mistake