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Thu. Aug. 20, 2009

Industrial Strength Dividends *

This is a guest post by Saj Karsan of Barel Karsan. Saj is a DIV-Net core members and a value investor.

One of the biggest fears of the dividend investor is that a company with an attractive-looking yield will cut its distributions to shareholders. While there are certain early warning signals on a company level that may indicate that the risk of a dividend cut is high, investors should also be aware that the risk of a distribution cut is higher in some industries than it is in others.

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