Comments by "Magic Beans" (@Magic_beans_) on "Why Investors Love Dividends (And Why They Can Be Dangerous)" video.

  1. 2023 example of a “dividend trap”: Hawaiian Electric. As of this writing (30 Nov 2023) their profile on various investment sites shows a dividend yield of 12-14%. However , they’re partly responsible for the Maui fires earlier this year, so they face an unknown but probably large liability for damages. This means (1) their share price got smacked down, and (2) they suspended their dividend to free up cash for when that liability comes due. Someone who doesn’t know the context could buy in thinking they’ve found a great income stream, only to learn it’s not coming anytime soon.
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