money guidance and how to get rich_319

_{If a yield looks too good to be true, it probably is. Remember that the market}

_{sets the price of the stock, and as a stock's price drops, its yield rises.}

_{For perspective, consider that a 30-year U.S. Treasury bond is priced}

_{to yield around 6% because investors are pretty sure the dividend will}

_{around 30% or more. Since investors are not so sure they'll end up}

_{being paid, they'll demand a higher yield before taking the chance.}

_{The same goes with REITs. As an example, consider Kranzco Realty}

_{Trust. Before merging with CV REIT and becoming Kramont Realty}

_{Trust, it was the highest-yielding shopping center REIT, with a yield}

_{of around 15%. Because of weak earnings, it had been forced to cut}

_{its dividend. This development caused many investors to sell, sending}

_{the stock price south and the yield up. Management's dividend cut}

_{may have been enough to reposition the firm on steady ground, but}

_{investors were understandably nervous about what the future held.}

_{If you invest in a REIT yielding 10%, things may well turn out hunkydory}

_{(or not). But, if you go for one kicking out 18% to 30%, you're}

_{buying into income streams that other folks find rather doubtful. You'll}

_{want to do enough research to be pretty sure you're right.}