The Seductive Dividends (Up To 10%) You Should Never Buy

The Seductive Dividends (Up To 10%) You Should Never Buy

Many people are desperate for any decent yield these days, which is making oil and gas funds (with payouts that can stretch into the double digits) look attractive.

But the trouble with buying these funds now is that you're putting yourself at risk of price drops far bigger than any yield you might collect. That's a worst-case scenario for anyone in retirement or hoping to clock out in the next few years.

Another thing to consider is that the argument for investing in energy funds is based on the recent improvement in oil prices, which appears to be accelerating.

I've seen a few pundits point to a "boom“ in oil prices, selectively choosing time periods to argue in favor of jumping into energy stocks and funds.

But don't be mislead. Zoom out a bit and you see that oil is on a long-term decline.

It's true that we'll likely see an economic recovery in 2021, but that doesn't mean energy prices will boom. Here are two things to keep in mind as 2021 plays out.

Keystone's Demise Won't Affect Prices

A big headline for the energy markets is President Joe Biden's announcement that he will cancel the Keystone XL pipeline, which has caused a mix of reactions