Companies that are paying out their profits in dividends usually don't have great growth opportunities. |
If they are paying out all of their earnings as dividends and reinvesting none of them, that's worrisome. For most companies, that's not going to be sustainable. |
It makes sense for most people to have part of their portfolio invested in high-yielding stocks because they tend to be the cheaper stocks on the market and because they give you a little cushion in an otherwise volatile market. |