DEFINITION of 'Accidental High Yielder'

A stock that carries an abnormally high dividend yield for the specific firm. An accidental high yielder is a stock of a company that was not intended to pay an excessive dividend yield;. however, the dividend yield rose when the price of the stock fell while the actual dividend payout remained constant. The adjustment of this ratio therefore causes the stock to be classified as such.

BREAKING DOWN 'Accidental High Yielder'

Accidental high yielders become more common during bear markets, when stock prices decline. Some companies prevent their stocks from falling into this category by lowering their dividends. These stocks can also provide at attractive total return for investors who purchase them at their depressed prices and then reap capital gains in addition to the dividends when prices rise.

RELATED TERMS
  1. Forward Dividend Yield

    An estimation of a year's dividend expressed as a percentage ...
  2. Indicated Yield

    The dividend yield that a share of stock would return based on ...
  3. Dividend

    A distribution of a portion of a company's earnings, decided ...
  4. Dividend Yield

    A financial ratio that shows how much a company pays out in dividends ...
  5. Sucker Yield

    When an investor has essentially risked all of his capital for ...
  6. Accelerated Dividend

    Special dividends paid by a company ahead of an imminent change ...
Related Articles
  1. Investing

    The 3 Biggest Misconceptions of Dividend Stocks

    To find the best dividend stocks, focus on total return, not yield.
  2. Investing

    The Risks of Chasing High Dividend Stocks

    Dividend stocks offer enticing yields, but a lot can go wrong on the way to collecting that dividend payout.
  3. Investing

    The Power Of Dividend Growth

    Dividends may not seem exciting, but they can certainly be lucrative. Learn more here!
  4. Investing

    Why Dividends Matter

    Seven words that are music to investors' ears? "The dividend check is in the mail."
  5. Investing

    The Top 5 Dividend Paying Oil Stocks for 2016

    Discover the top five dividend-paying oil companies for 2016 and what factors contribute to their ability to continue dividend payments.
  6. Investing

    AAPL: Apple Dividend Analysis

    Apple's dividend has had healthy growth ever since its 2012 reinstatement, thanks to Apple's continuously rising revenue, earnings and operating cash flow.
  7. Investing

    How Dividends Affect Stock Prices

    Find out how dividends affect the price of the underlying stock, the role of market psychology and how to predict price changes after dividend declaration.
  8. Investing

    4 Ratios to Evaluate Dividend Stocks

    Discover details about fundamental analysis ratios that could help to evaluate dividend paying stocks, and learn how to calculate these ratios.
RELATED FAQS
  1. What is the difference between the dividend yield and the dividend payout ratio?

    Learn the differences between a stock's dividend yield and its dividend payout ratio, and learn why the latter might be a ... Read Answer >>
  2. What is the difference between dividend yield and dividend payout ratio?

    Understand the difference between the dividend yield and the dividend payout ratio, two basic investment valuation measures ... Read Answer >>
  3. Does the S&P 500 index include dividends?

    Learn about dividend payments and the S&P 500 and how the yield on the index has trended lower over time due to changes in ... Read Answer >>
  4. What factors drive share prices in the aerospace sector?

    Learn about the average annual dividend yield for companies in the electronics sector and understand why the average is a ... Read Answer >>
  5. Which stocks in the wholesale sector pay the highest dividends?

    Learn which wholesale sector firms pay the highest dividends and why investors analyze companies' financial health when dividend ... Read Answer >>
  6. Which companies in the chemicals sector pay the highest dividends?

    Learn what the average annual dividend yield of insurance companies is and which factors should be considered when choosing ... Read Answer >>
Hot Definitions
  1. Frexit

    Frexit – short for "French exit" – is a French spinoff of the term Brexit, which emerged when the United Kingdom voted to ...
  2. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  3. Down Round

    A round of financing where investors purchase stock from a company at a lower valuation than the valuation placed upon the ...
  4. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  5. Portfolio Investment

    A holding of an asset in a portfolio. A portfolio investment is made with the expectation of earning a return on it. This ...
  6. Treynor Ratio

    A ratio developed by Jack Treynor that measures returns earned in excess of that which could have been earned on a riskless ...
Trading Center