Invesco's Barnett warns on 'evil temptress' of high yields

The manager of the Invesco Perpetual Income and High Income funds said  higher yields often mask the fact a dividend cut may be on the horizon. Thirteen FTSE 100 constituents currently have a yield of over 5% after recent price falls. But the likes of Tesco - which slashed its dividend in August after warning on profits - demonstrate the need for caution, according to Barnett (pictured). "Investors continue to succumb to the temptation of high but unsustainable yield - they fall headlong into the so-called yield trap, discovering after purchase that the underlying company's high profi...