Yield. Danger ahead. You won't just see these warnings while on the road this holiday season -- they also relate to some dividend stocks. Investors can be enticed by high dividend yields, but sometimes the stocks themselves are dangerous picks. We asked three of our Motley Fool specialists to identify stocks that fit this category. Here are the stocks they think could have dangerous dividends.
Matt Frankel: One dividend stock that I'm a little nervous about right now is Prospect Capital (NASDAQ: PSEC). It's not even that I'm convinced the company won't have enough money to pay its dividend. It's the strange behavior coming from the company lately that worries me. Leo Sun: Frontier Communications (NASDAQ: FTR ) pays a forward annual dividend of 5.8% -- higher than AT&T's 5.2% and Verizon's 4.3%. However, Frontier slashed its quarterly dividend twice in the past -- from $0.25 to $0.1875 (after acquiring some of Verizon's landlines) in 2010, then from $0.1875 to $0.10 in 2012. Keith Speights: On the surface, PDL BioPharma (NASDAQ: PDLI ) looks like a great dividend stock. A stellar 7.6% forward annual dividend yield combined with a low 31% payout ratio might seem like an investor's dream. That dream could soon turn into a nightmare, though.
Source: Motley Fool
Related Articles:
- Dividend Stocks vs. Dividend ETFs
- If Only I Had Known About These Dividend Stocks...
- 10 Dividend Stocks Delivering The Secret To Success
- 10 Dividend Stocks For A Rainy Day
- 4 Higher Yielding Basic Materials Stocks With Growing Dividends
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
Showing resilience during a tough week was a group of stocks that has not been heard from much in the past two years. A group that has been ...
-
While these pharma stocks have steady cash flows and revenues, there’s still plenty of growth left in the tank from new drugs in development...
-
Do you ever wish your dividend stocks paid out monthly rather than quarterly? For income-oriented investors who cover their monthly expenses...
-
This company is one of the less risky mortgage REITs. We see preferred shares from it as having a risk rating of 2. The series C shares drop...
-
In bull markets, dividends become more or less irrelevant. When the Dow Jones Industrial Average traded above 14,000 in 2007, very few stoc...
-
After prices rising for nearly two straight years, volatility has returned to the oil patch in the past month. Investors can expect above-av...
-
Despite a strong year, the renewable power company has lost 20% of its value, which has pushed its dividend yield up to 7%. That lower price...
-
Add it all up, and things are starting to get tense. That leaves investors wondering where they can go for safety. After years of tech outpe...
-
The yield is 9.55%, with 1.12X coverage that should improve in 2019. Management has raised the quarterly distribution 16 straight quarters. ...
-
Insiders bought 45,000 units last week: It's now at multi-year lows, and is 26% below analysts' lowest price target, and is selling ...
0 comments
Post a Comment
Post a Comment