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
Dividend Growth Stocks News
- Our Top 10 High-Growth Dividend Stocks -- May 2025 - Seeking Alpha - 5/17/2025
- Dividend Stocks: Ashok Leyland, Havells India, LTIMindtree, among others to trade ex-dividend next week; Full list - Mint - 5/17/2025
- Top Dividend Stocks To Enhance Your Portfolio - Yahoo Finance - 5/14/2025
- 2 Dividend Stocks to Double Up on Right Now - MSN - 5/16/2025
- Want to Make $1,000 in Annual Passive Income? Invest $11,250 Into These Ultra-High-Yield Dividend Stocks. - The Motley Fool - 5/17/2025
- Automatic Data Processing Inc. (ADP) Dividend Stock Analysis - 5/16/2025
- Air Products and Chemicals Inc. (APD) Dividend Stock Analysis - 5/9/2025
- Waste Management, Inc. (WM) Dividend Stock Analysis - 5/2/2025
- Wal-Mart Stores, Inc. (WMT) Dividend Stock Analysis - 4/25/2025
- Abbott Laboratories (ABT) Dividend Stock Analysis - 4/18/2025
Dangerous Dividend Stocks to Avoid for Retirement
Posted by D4L | Thursday, November 14, 2013 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.