I’ve written a few times about how looking at dividend yield could be misleading. One part of the reason is that some companies end up paying more than they can afford to. FTR is one obvious example and I will discuss it a bit later but there are many more.
Can you believe that none of the top 20 companies in this chart have a payout ratio under 50%!! To me that is shocking. Dividend investing is about much more than finding a big yield, it is about finding longer term stocks that will be able to increase their dividend yields over time.