enghoung

Dividend yield is important, but more important is whether there is the ability to pay high dividends,which means have to consider the debt level or the gearing ratio.If gearing ratio is high, chances are instead of collecting dividend,we will end up having to give back the dividends to the company, when the company makes cash call,or if the company goes bankrupt like Hyflux which used to issue some high yield debt instruments.

Smallcapasia

Reply to @enghoung : definitely agree.