How do you tell if a company’s dividend is unsustainable? Some look at the current yield in comparison to its peers. If we are talking about the packaged goods industry, for example, and Company A has a yield of 15% while Company B’s is 3%, most likely there’s something’s wrong with Company A’s business, thereby reducing the value of its stock.
Income expert Roger Conrad uses free cash flow rather than earnings when examining a stock’s payout ratio. All things being equal, free cash flow is a much better indicator of a company’s overall health. Using the FCF ratio as my guide, here are four stocks that possess an unsustainable dividend: Windstream Holdings’ (WIN), Vector Group (VGR), PDL BioPharma (PDLI) and Oi SA (OIBR).
Source: InvestorPlace
Related Articles:
- 6 Stocks With a Sustainable Dividend
- 5 Dividend Stocks Building A Growing Cash Stream
- 9 Dividend Stocks Beating The 4% Rule
- How To Buy Dividend Stocks At The Bottom
- 8 High-Yielding Dividend Aristocrats Not Afraid to Raise Their Dividends
Dangerous Dividend Stocks to Avoid for Retirement
Posted by D4L | Thursday, November 14, 2013 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
Dividend Growth Stocks News
~
Popular Posts Last 30 Days
-
If you're worried about inflation rearing its ugly head next year, you should probably worry about more likely catastrophes, such as bei...
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
When a company pays a dividend, it's a good thing for shareholders. When a company consistently pays a dividend every quarter, it's ...
-
We screened our 24/7 Wall St. dividend equity research database and found 5 stocks that combined can generate over $3,000 of annual passive ...
-
The stock market has been on an upward path of late, with some of the most prominent stocks hitting astronomical highs. The dividend yield o...
-
My top financial goal is to eventually become financially independent. The foundation of my strategy is to make investments that produce an ...
-
Dividend growth stocks can be incredibly attractive investments if you crave recurring income. As these types of stocks raise their dividend...
-
In my opinion, there are three criteria investors should consider when evaluating a particular stock for their portfolio. The first is histo...
-
In this article, we discuss 5 best March dividend stocks to buy. If you want to read our detailed analysis of dividend capture strategy and ...
-
As the broader stock rally broadens to some of the more “boring” corners of the market, it’s the higher-yielding dividend plays that could s...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.