I recently wrote a cautionary story about the risk of dividend cuts in high-yield stocks, using Pengrowth Energy (NYSE:PGH) as the example. And on Wednesday, the shock of reduced dividends was highlighted for shareholders with the crash and burn of RadioShack (NYSE:RSH). The retailer eliminated its dividend altogether, and shares melted down around 30% in one day as a result. Those who bought in recent weeks with the hopes of an 18% annual dividend yield learned a painful lesson.
The disastrous implications of a dividend cut need no further explanation. So today, I’ll focus instead on a look forward to companies that might be in store for dividend trouble. So what dividend payers are cause for concern? Here are two: Pepco (NYSE:POM) and Regal Entertainment Group (NYSE:RGC).
Source: InvestorPlace
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