Heavily Shorted Dividend Stocks to Sell

When it comes to dividend stocks, what is commonly called a “payout” would sometimes be more accurately called a “payoff.” Many picks have little to offer investors in the way of growth, so their high yields are really just ways of making up what is lacking. Of course, while some stocks’ dividends help spackle over a few flaws, others are making up for some potentially serious disasters waiting to happen.

One way to find such companies is to look for high-yielding stocks that investors are still pretty bearish on. Heavy short selling in many cases isn’t necessarily a kiss of death, but a red flag that merits further consideration — and in some cases, might indicate that investors feel these big yields are in danger. Let’s take a closer look at four heavily shorted dividend stocks that investors are probably better off avoiding: Sturm, Ruger & Co. (RGR), Frontier Communications Corp. (FTR), PDL BioPharma (PDLI) and Alon USA Partners (ALDW).

Source: Investor Place

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