This Robinhood Stock Has a Trailing 5% Dividend Yield -- Is It Too Good to Be True?

Investors are right to be leery of stocks with high dividend yields. Although such returns appear attractive on the surface, investors have to remember that dividend stocks that are not real estate investment trusts (REITs) can adjust dividend payments at any time. Moreover, REITs have the same freedom as long as they pay out at least 90% of their net income in dividends.This fact may leave investors wondering what to do about a REIT called Realty Income (NYSE: O), a popular stock on the Robinhood Markets platform. Known for paying a monthly dividend, its 5% dividend yield is more than quadruple the S&P 500 average of 1.2%. Does that high return make the payout too good to be true? Let's take a closer look.Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool