- High dividend yield. Currently around 9.65
- Dividend frequency. Thought it would build compound faster at a monthly rate
- Share price. Thought I could buy more shares initially which would help in the long run. But it doesn't lead to greater returns in the long run. My post on does price matter shows some good examples.
- Do more research when the yield is higher than 4%. Sometimes there are reasons and sometimes it is a sign of a bad or declining company.
- The payout ratio has been way above 100% since 2012. A good investor should focus on companies that keep this below 75% unless it is a REIT or MLP. Horizon is a finance company loaning out money to various types of companies. Not sure if this is typical for this type of company but do you really want to own a company borrowing money to pay you a dividend.
- The dividend hasn't grown at all in recent years. Unless we have negative inflation this will not keep up with it. It is also another warning sign that the company isn't generating enough profits and passing them along to shareholders. At least they haven't cut it yet :-0
Full Disclosure: Long on HRZN
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