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Gertrude and Gus are retired and have a substantial amount of savings in CDs. With rates near zero they are looking for a higher return
Gertrude and Gus are retired and have a substantial amount of savings in CDs. With rates near zero they are looking for a higher return and a broker suggests a large company with a long history of paying dividends (30 years). The dividend yield is a whopping 5.4%.The companymaintains a constant payout ratio of 80%.They are considering putting a significant portion of theirsavingsin this stock and want your expert financial advice. Pleaseprovide Gert and Gusthe positives and negatives of such a purchase. Please provide reference
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