The financial world is no stranger to misinformation and manipulation. A recent example is Builder.ai. The startup, once valued at $1.5 billion, was revealed to be far from the AI-driven company it claimed to be. Instead, its AI-app service was a team of 700 engineers based in India.
Doing your diligence to be sure you don’t get exploited by misinformation and manipulation has never been more critical. This applies to all kinds of investing, even dividend strategies, which most people consider to be safe and simple. The truth is that not all dividends are real. Some are false, paid out of cash balances or borrowings. Only diligent analysis can uncover the truth about whether a company can afford to keep paying its dividend. To learn more about False Dividend Stocks, click here.