Dividends4Life: 7 Dividend Stocks In The Danger Zone

7 Dividend Stocks In The Danger Zone

Posted by D4L | Saturday, October 08, 2016 | | 1 comments »

Don’t think that just because a company pays a dividend, and has done so for many years that the dividend is safe. Over the years, we have witnessed companies that were seemingly “safe” forced into reducing or eliminating their dividend altogether. Without a dividend today, it is clear that the company’s bad investments and debt forced management to suspend the payout altogether. Granted, CHK may seem like the outlier, but it happens more than you would think.

With that said, I am looking at dividend stocks that could be at risk. These may not happen this year, maybe not even the next … but the longer they operate the way they are, the closer they get to the danger zone. Those operations could eventually cause a reduction, even a suspension of their respective dividends. Dividend Stocks to Sell: BP (BP), GlaxoSmithKline plc (ADR) (NYSE:GSK), Seagate (STX), Frontier Communications (FTR), Blackstone Group (BX), Williams Companies (WMB) and Centurylink (CTL).

Source: InvestorPlace

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1 comments

  1. Steven Martin // October 8, 2016 at 4:51 PM

    10% yield looks nice. I enjoyed it for a few years, but sold it last week. $5B market cap but $18B of debt! 1.17B shares outstanding. Did not check when the debt comes due. Bad customer service reputation in our area (WV). Most are anxiously awaiting the arrival of competition so they can just drop FTR''s DSL service.

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