Buying stocks with big dividend yields can be a smart way to generate a stable flow of passive income. But if a stock's yield looks too good to be true, it might be unsustainable. One way to get a bead on whether a company's dividend is sustainable is to check its payout ratio.
Generally speaking, weak earnings and FCF growth and payout ratios exceeding 100% indicate that a company's dividend could be slashed in the near future. Let's take a look at two companies which fit that profile -- Vector Group (NYSE:VGR) and Frontier Communications (NASDAQ:FTR).
Source: Motley Fool
Related Articles:
- 10 Stocks That Have Paid Dividends Since The 1800s
- Are You Patient Enough To Be Wealthy? These 7 Dividend Stocks Will Help You Wait
- Three Keys For Successful Dividend Growth Investing
- 5 Exceptional Dividend Growth Stocks With Quality Financials
- 10 High-Yielding Dividend Aristocrats Not Afraid to Raise Their Dividends
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
Having a few trusty dividend stocks that you can approach with a "set it and forget it" mindset takes a lot of the stress out of i...
-
REITs don’t just pay out attractive yields; many of these companies are terrific operators too. So not only do investors get to collect a so...
-
It’s in volatility like this that the value of dividends truly shines through. The market could be having a massive sell-off, but when a com...
-
The company reported solid results for its fourth fiscal quarter. The business development company once again covered its dividend payout wi...
-
If you are interested in high-yield dividend stocks, it’s better to focus on a company’s history of growing its dividend rather than just lo...
-
When the average S&P 500 company pays less than two percent, a 6.5%-yielding stock certainly deserves income investors’ attention. A Top...
-
When it comes to stock investing while in retirement, dividend stocks tend to be some of best investments you can make. Not only do they ten...
-
While conventional wisdom holds that you reach for yield, my strategy has been to look first for capital gains, then to management teams tha...
-
There are hundreds of high-yield dividend stocks on the market. At least, that's the case if your definition of high dividend yield isn&...
-
I screened for cheap dividend stocks that are showing some upward movement, trading above their 50-day moving average, with a 3% or higher d...
0 comments
Post a Comment
Post a Comment