Rest in peace, Pitney Bowes (NYSE: PBI ) double-digit dividend yield. We hardly knew you. Perhaps I'm a little premature in expressing condolences, but it's just a matter of time. Pitney Bowes pays a 10.8% dividend yield now. It won't last. This double-digit dividend yield will die in one of two different ways. Here are the potential paths for the high dividend's demise.
Pitney Bowes operates in a market experiencing secular decline. Buying its stock just for the sky-high dividends is a risky undertaking. If shares continue their multi-year decline, investors could be left in the lurch. Dividend investors can find better opportunities in companies with stronger moats. Health-care REIT Medical Properties Trust (NYSE: MPW ) , for example, owns and leases hospital properties. The company pays a dividend yield of 8%. Utility company Exelon (NYSE: EXC ) offers a lower but still strong yield of 5.5%.
Source: Motley Fool
Related Articles:
- 2011 Was A Great Year For Dividend Stocks
- Utilities Stock Funds Were 2011's Bright Star
- 2011 Dividend Increases Nearly Doubled, and 7 Dividend Stocks that Led the Way
- 6 Dividend Stocks For The New Year
- Bonds Look Morbid When Compared To These Dividend Stocks
________________________________________________________________
Subscribe to:
Post Comments (Atom)
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.