| Stocks whose dividend payouts are high as a proportion of their share price. This could either be because the sector in which they operate is out of favour in the market (hence depressing their share price), or it could be because the company itself is seen to be in difficulty. From an investment point of view, high-yielders have a superficial attraction in paying a high rate of income, but investors need to consider why the shares are cheap in relation to the income and whether there is a risk of serious capital loss on the value of the shares which would negate any gain on the income.
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