This is one common mistake by the newbie trader; you should not pick a stock on just because they’ve offered very good high dividends. Some company will post at least 100% stock dividend… nice huh? Imagine if you have availed this dividend, then you’ll be entitled of additional 100% of your shares on the payment date. But take note that price stock may drop drastically if the company didn’t able to meet the earning estimates. However, your holding shares dividend is still intact.

If th...
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