Penny Stocks Good Or Bad
Is VTKHY a good or a bad investment?
(VTech Holdings) Its price is currently $110.25, and its annual dividend is currently given as $12.41. That is misleading, though, because the stock only distributes its dividends semi-annually, and they tend to pay out $6 at one pay date and, say, $1.50 at the other. So the real annual dividend is more in the realm of $7.50.
The stock is highly priced, but it is a Pink Sheet stock, which includes either penny stocks or very lightly-traded stocks. VTKHY falls into the lightly-traded category. It appears to be out of China. You’d think, if the company is stable enough to have such a high share price and to offer such a startlingly high dividend, it would be traded more heavily. Why isn’t it? It makes telecommunications equipment and adaptive learning equipment for children.
I agree with Common Sense.
I won’t buy a pink sheet stock. Most pink sheet stocks are penny stocks, foreign stocks, extremely small companies, or very lightly traded stocks. Pink sheet stocks don’t have to meet the stringent requirements that stocks have to meet in order to be listed on the major exchanges. Mutual funds and institutions usually won’t touch them either, because a large buy or sell transaction will cause huge fluctuations in the stock price. Pink sheet stocks are also prone to manipulation as well.
There are safer places to invest your money.
Penny stocks – The Best way to profit from pump & dumps
