But investors who are enthused by high dividends should factor in a host of metrics. What does a high dividend yield mean? Companies paying out high dividends typically tend to be mature players in their industries with few alternative avenues to invest the cash. The high dividends can indicate a lack of room or ideas for expansion. Mutual Fund dividends are also taxable at your slab rate, making them tax inefficient for high earners.

Source: Mint May 30, 2021 17:15 UTC