Hello folks, I am new to investing and have a couple questions I was hoping you all could help me with.
I used a stock screener to look at stocks with high dividend yields. Alliance Holdings GP (AHGP) was one of interest with an 11% dividend yield.
How is it feasible for a company to pay out so much for dividends? Do they no longer try to expand or invest in R&D?
Should I expect the stock price to change drastically? Its been explained to me before that if a stock pays out X% on dividends, its stock price should drop by X% shortly afterwards - is this statement accurate?
Thanks everyone, I love this sub!
Submitted August 18, 2017 at 03:40PM by mistadong http://ift.tt/2vLYo49
