There are many ways that people and companies use to make big profits, one of which is using the Dividend Trap method, so that it will be detrimental to stock buyers. Therefore, if you are going to buy shares, you should be careful, because in the capital market, dividend traps often occur, because in general the demand for shares will be high, when dividends will be distributed to shareholders.
so there are investors who will fall into the dividend trap.
What's Dividend Trap?
The dividend trap is a trick where the dividend yield is increased, so that the stock will become attractive and promising to invest, so that there will be many buyers, even though the stock price is actually heading for a downtrend. Of course, investors who buy these shares at a higher price than they should have, have entered the dividend trap, because after the cum date, the price will fall and of course investors will lose.
so there are investors who will fall into the dividend trap.
What's Dividend Trap?
The dividend trap is a trick where the dividend yield is increased, so that the stock will become attractive and promising to invest, so that there will be many buyers, even though the stock price is actually heading for a downtrend. Of course, investors who buy these shares at a higher price than they should have, have entered the dividend trap, because after the cum date, the price will fall and of course investors will lose.