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
-
These days, the healthcare stocks are looking pretty healthy compared to stocks in other spaces. Despite political pressures about lowering ...
-
Nothing makes life easier for an investor than finding the kind of stocks where you can park money for a long, long time, trusting that they...
-
These three dividend aristocrats have beaten the market during the three most recent pullbacks. They've also outperformed in 2019. There...
-
As the sun sinks on another summer and Labor Day taunts with the pitiful proposition of just 24 hours less work, it stands to reason that so...
-
In Five High-Dividend Stocks You Should Watch, we discussed five dividend stocks, including MLPs, trading at yields above 11%. In this artic...
-
The past decade has rewarded investors with remarkable returns, but investors might not want to underestimate the odds that an economic rece...
-
This company recently released solid second quarter earnings. The mortgage REIT once again outearned its dividend with core earnings in Q2-2...
-
This company released Q2-2019 results recently. The results beat both revenue and earnings estimates. It reported decreasing earnings on the...
-
Conservative investors should adopt the same precautions toward monthly dividend stocks as you would any income-generating investment. For i...
-
As a risk-averse income investor, I always approach double-digit yielders with caution. The reason is simple: when most blue-chip companies ...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.