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How I Verify a Dividend Yield Before I Buy

When a 10% yield drops to 0% in 18 months because free cash flow can’t cover payouts

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The Investing Iguana
Apr 30, 2026
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How I Verify a Dividend Yield Before I Buy

In 2023, an SGX retail investor bought into a foreign office trust boasting a ten percent headline yield. Eighteen months later, the distribution was suspended entirely, leaving the portfolio with a zero percent return and permanent capital destruction. A high yield on a stock screener is not a promise of future income. It is often a mathematical warning sign of a collapsing share price.

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