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One of the most significant pitfalls in dividend investing is the lure of high yields. New and even experienced investors often get tempted by stocks and funds with exceptionally high dividend yields. While it may seem appealing to invest in a stock that promises a 12.77% yield compared to a more conservative 6.8%, this chase generally leads to disappointment. The risk associated with unusually high yields often masks a history of dividend cuts and share price declines.