The Biggest Dividend Stock Disasters

Although many investors have been very successful with dividend stocks, others have lost money when share prices drop or dividends are cut. Since dividends are not guaranteed, if a company is experiencing problems, they often reduce or even completely suspend dividends. Below are seven former big-time dividend players that imploded in recent years, sucking down billions of dollars in shareholder value along with them.

The dividend stock world is littered with its fair share of recent disasters. The factors that led to the downturn of once mighty dividend payers are vary greatly. Some companies simply failed to change with the times. Others have incompetent management to blame. Still others took on massive risks that eventually came back to bite them. Most of these companies exhibited at least one of the following signs before their massive dividend cuts, however: a sharply falling share price, or a lack of dividend raises over a long period of time.

Source: Dividend.com

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