The trouble with dividends: they get cut

Another day and more carnage for income-seeking investors.  Yesterday Westshore Terminals Investment Corp announced that it was further slashing its dividend.  From a high in May 2015 the stock had already fallen 49% before yesterday news.  It’s down a further 25% since last night’s close.  A widely recommended brokerage ‘top pick’, the damage here has no doubt hit would-be conservative investors hard.  In truth, most never should have been holding this type of security–money they couldn’t afford to lose.  Reaching for ‘yield’ with over-priced assets is a well-worn path to hell.

Westshore Dec 10 2015

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