Shares of Myer Holdings Ltd (ASX: MYR) have today fallen hard, down 4.6% in late afternoon trading.
Whilst the heavy downwards share price movement could be partly attributed to the general market malaise and a recent class action filing, today Myer shares went ex-dividend.
That means shareholders on its registry as of yesterday evening will be entitled to its recently declared seven cents per share, fully franked, dividend.
At yesterdays close price of $1.415, investors will be receiving a dividend equivalent to a 4.9% yield. Grossed-up for the franking credits, that's a whopping yield of 7.06%.
Unfortunately, since the struggling retailer announced its half-yearly results on March 19, its share price has fallen 15%, leaving a sour taste in many investors' mouths.
Indeed, the recent share price movements highlight a vital problem with many investors' search for yield in this current 2.25% low interest rate environment. It's that investors must, first and foremost, focus on business quality before the dividend yields.
As it stands, investors who bought Myer shares on March 20, are currently sporting losses of over 10%.
In my opinion, given its lacklustre customer service, poor online presence, increasing competition and host of other problems, there are much better dividend stocks to buy and hold throughout 2015.
