A high dividend yield is sometimes a warning sign, not a gift. Core idea: Yield rises when the price falls. If the price is falling because the business is deteriorating, the dividend may be the next thing to go. Why it matters: That distinction separates income investing from a value trap disguised as yield. In real life: A utility yielding 8% when peers yield 4% often means the market is pricing in a dividend cut, not rewarding patient investors. Common slip: The mistake is screening only by yield level without checking payout ratio, free cash flow coverage and debt trends. Try this: Explain in one sentence what problem this idea solves and what problem it does not solve. The point is not to memorize the label. The point is to know what variable is actually doing the work.