Personal Finance Things to keep in mind before investing in dividend stocks Updated : December 25, 2019 06:32 AM IST A high dividend yield may be a result of underperforming security and hence is of no use if your capital base is depreciating. If a company is paying good dividend payouts despite high debt, then it is a red flag to watch out for. Subscribe to Moneycontrol PRO at just Rs.33/- per month for the first year. Use code SUPERPRO. Limited period offer. Available on Web and Android.