All too many investors get lured into the trap of buying high-yield dividend stocks. Those monstrous yields tend to make us throw caution to the wind despite clear signs to stay away. It only takes a short amount of time — or an abrupt dividend cut — to make us realize the error in our thinking.
So we asked three of our contributors to highlight stocks they consider high-yield traps to avoid. Here’s why they picked gasoline retailer Sunoco LP (NYSE: SUN), Fifth Street Finance (NASDAQ: FSC), and Lenovo Group (NASDAQOTH: LNVGF).