When searching for dividend stocks that will provide a steady stream of income throughout the year, it's important to look beyond the yield reported on financial dashboards. Why? A high yield stock doesn't necessarily make a slam dunk investment, especially if the dividend or distribution isn't sustainable. Unfortunately, investors can learn that reality the hard way if master limited partnerships are the stock of choice, which often have variable (and sometimes volatile) distributions each quarter.
Take nitrogen fertilizer specialist CVR Partners LP (NYSE: UAN ) as the perfect example. The company splashed onto the scene in 2011 and quickly persuaded investors with its high yield and plans for growth. However, despite originally guiding for an annual distribution range of $2.15 to $2.45 per share in 2013, several setbacks during an expansion project at the company's lone production facility resulted in an annual distribution of $1.983 per share. Things have never quite been the same since then -- as the share price chart demonstrates.
Source: Motley Fool
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