Hello !
There really isnt any safe way to invest in high yielding stocks since all investments have risks and it is highly unlikely or almost impossible to invest with 0 risks.
There are some ways that can help to reduce your risk exposure.
Firstly, it is about the basics where you learn how to evaluate the company's financial health as well as its future prospects. When evaluating a company, use a variety of indicators and not just rely on one indicator or ratio as it will not be able to paint a complete picture of the company's financial health.
Next, in order to reduce your risk exposure, you should avoid putting your trust in a single company by using mutual funds.
Also, be wary of companies that have high dividends but low retained earnings per share. This may be different across industries. It may vary from industry to industry. In general, companies must reinvest some profits to make sure that they can continue profitable operations in the future, and that is impossible if there are no retained earnings. All these information can be found in the company's balance sheet.
hope this helps!
Hello !
There really isnt any safe way to invest in high yielding stocks since all investments have risks and it is highly unlikely or almost impossible to invest with 0 risks.
There are some ways that can help to reduce your risk exposure.
Firstly, it is about the basics where you learn how to evaluate the company's financial health as well as its future prospects. When evaluating a company, use a variety of indicators and not just rely on one indicator or ratio as it will not be able to paint a complete picture of the company's financial health.
Next, in order to reduce your risk exposure, you should avoid putting your trust in a single company by using mutual funds.
Also, be wary of companies that have high dividends but low retained earnings per share. This may be different across industries. It may vary from industry to industry. In general, companies must reinvest some profits to make sure that they can continue profitable operations in the future, and that is impossible if there are no retained earnings. All these information can be found in the company's balance sheet.
hope this helps!