A dividend increase isn’t always a sign of a rosy financial picture. Karen Finerman plots the dividend dupe and how to protect against it.
Dividend or Dupe?
Dividend Increase Date Return Since
MBIA 2/27/07 -78%
Ambac 7/25/07 -86%
Northern Rock 5/25/07 -89%
New Century Financial 11/2/06 -99%
And Lehman Brothers just got in on the action, Karen said, raising its dividend this week even though she predicts the bank has farther to fall. She continues to short the stock.