It happened again. Income-seeking investors piled into a 3% payer under the guise of dividend growth and safety… and they lost 10% in a single day. Wal-Mart (WMT) lured them in and lowered their net worth this time. Before the drop, the company’s yield was at an all-time high of 3.1% thanks to 42 years of consecutive payout increases. The aristocratic allure of this dividend-payer tempted forward-looking fans. They envisioned today’s payout compounding itself in their portfolio at previous growth rates.
Wal-Mart’s not the only hallowed name with an outdated business model and rising payout ratio. Here are three more 3% payers at risk for double-digit declines: Paper products maker Kimberly-Clark (KMB) has raised its dividend 43 straight years and counting, but this streak is in danger if KMB can’t peddle more paper soon. Food sales under McDonald’s (MCD) golden arches have been under pressure in recent years. The company is on the wrong side of every major food trend in America, and that’s finally starting to affect earnings. Finally, investors are paying 24 times earnings for food distributor Sysco (SYY), which sports declining earnings and operating margins.
Source: Forbes
Related Articles:
- Successful Investors Take The Emotion Out
- 7 Higher Yield Dividend Growth Stocks
- 8 Select High-Yield S&P 500 Dividend Stocks
- A Winning Investment Strategy
- 7 Dividend Stocks With A 20% Yield In 20 Years
________________________________________________________________
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...
-
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 ...
-
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. ...
0 comments
Post a Comment
Post a Comment