The dividend trap destroying your stock portfolio

Most Indians chase high dividend stocks thinking they're safer than growth stocks. But here's the truth: a high dividend can be a red flag, not a green light.

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When a company pays out too much dividend, it has less money to reinvest in growth. That means the stock price stagnates or falls over time.

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A company paying twelve percent dividend but growing zero percent will crush your total returns compared to a company paying three percent dividend but growing fifteen percent.

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The real math: dividend yield plus capital appreciation equals your actual return. Ignore one, and you're only seeing half the picture.

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So before buying that high-dividend stock your colleague recommended, ask yourself: is the company investing in its future, or just milking the present?

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