Dividends4Life: These 2 Dividend Stocks Could Slash Their Payouts

Buying stocks with big dividend yields can be a smart way to generate a stable flow of passive income. But if a stock's yield looks too good to be true, it might be unsustainable. One way to get a bead on whether a company's dividend is sustainable is to check its payout ratio.

Generally speaking, weak earnings and FCF growth and payout ratios exceeding 100% indicate that a company's dividend could be slashed in the near future. Let's take a look at two companies which fit that profile -- Vector Group (NYSE:VGR) and Frontier Communications (NASDAQ:FTR).

Source: Motley Fool

Related Articles:
- 10 Stocks That Have Paid Dividends Since The 1800s
- Are You Patient Enough To Be Wealthy? These 7 Dividend Stocks Will Help You Wait
- Three Keys For Successful Dividend Growth Investing
- 5 Exceptional Dividend Growth Stocks With Quality Financials
- 10 High-Yielding Dividend Aristocrats Not Afraid to Raise Their Dividends

Click here to have future posts delivered to you for free!

_____________________________________________________________________

0 comments

Post a Comment

~

Latest From Dividend Growth Stocks

Popular Posts Last 30 Days