Dividends4Life: Dead Dow Dividend Stocks

Dead Dow Dividend Stocks

Posted by D4L | Thursday, April 05, 2012 | | 0 comments »

Collectively, the 30 Dow Jones Industrial Average stocks are meant to represent the entire stock market. But as with any group, there are some that do things well … and some that bring up the rear. One particular area of divergence is how Dow components pay dividends. The top 10 Dow dividend stocks offer yields as high as 6% — while the lower portion of these 30 components can’t even crack the 1% mark.

Some flat-out refuse to pay a decent dividend, hoarding their profits. Yes, dividend payout ratios are low across the board at about half their normal levels — roughly 25% compared to 50% payout ratios historically. But some Dow components are lower even than that. And then, of course, are the battered stocks that are flat-out incapable of increasing payouts because of poor operations. Although the dividend yield for the broader market is pretty paltry at just south of 2%, these dead dividend stocks can’t even hop over that low bar.

Source: InvestorPlace

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