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
-
Each of these high-yield dividend stocks has a dividend yield exceeding 6.5%. That’s is a very high dividend yield few stocks have. In addit...
-
I like high-yield dividend stocks that also have the ability to buy back their shares. These are called total yield dividend stocks. They of...
-
Because their financials must support a monthly dividend payment, the companies in this space are stable by nature — their operations are st...
-
While there are a number of factors responsible for pushing the stock market lower, the spread of COVID-19 looks to be the match that lit th...
-
As veteran traders will attest, though, nothing lasts forever. It might not be a bad idea to start adding exposure to the market's lagga...
-
Dividend payments are, by nature, a conservative strategy for companies to use, and as a rule of thumb the more conservative companies are l...
-
In a soaring market, a few percentages of dividends may not seem like much. Over the past few months, the Dow Jones Industrial Average, the ...
-
So if the economy does putter out, what should you do with your money? You could do worse than bet on recession-proof dividend stocks. That ...
-
There’s a group of companies that have started catering specifically to retirees: monthly dividend stocks. Admittedly, the universe of month...
-
It operates in a great location. Florida has seen a material influx of residents in recent years as people look to move to a warmer climate ...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.