Three Italian banks offer potentially unsustainable high dividend yields

Three Italian banks are offering dividend yields near or above 10%, a rare occurrence on the stock market. This surge in dividends is largely due to the recent rise in interest rates. Banca MPS, Banco BPM, and Banca Ifis are the three banks highlighted, with dividend yields of 12.09%, around 10%, and 7.46% respectively. These high yields are linked to increased interest margins, but the sustainability of these dividends is now in question. The European Central Bank's interest rate cuts could reduce bank profits, potentially leading to dividend cuts. Investors should consider the risks associated with high-yield dividends, as they may not be sustainable.