If you hold dividend stocks today, you’re facing a particularly high risk of a dividend cut. That’s based on the latest numbers from FactSet, which show that 42 S&P 500 companies had payout ratios above 100% as of the end of the second quarter—so they’re paying out more in dividends than they’re earning. Worse, this is the third-highest total in a decade. And yes, it’s also true that not all of these companies will be forced to reduce their dividends. Some will find ways to juice their earnings, either by growing sales, cutting costs, or a combination of the two.
But more and more are going the dividend-cut route. In Q2, for example, 158 US stocks slashed their payouts—up 86% from a year ago! That makes looking beyond dividend yield, at factors like payout ratios, earnings, cash flow and balance-sheet strength more important than ever. If that sounds like work, don’t worry. I’ve done it for you and have come up with four stocks with particularly wobbly payouts you need to avoid at all costs—or sell them if you already own them: Frontier Communications (FTR), Caterpillar (CAT), The Mosaic Co. (MOS) and Mattel (MAT).
Source: Forbes
Related Articles:
- 6 Dividend Growth Stocks With Very Little Debt
- 4 Secrets To Finding The Best Dividend Stocks
- What Determines A Dividend Stock's Yield
- 7 Dividend Stocks Yielding Over 3%, With Tiny Payout Ratios
- Warren Buffett's Secret To 50% Returns
4 Dangerous Dividend Stocks You Need to Dump Now
Posted by D4L | Wednesday, November 30, 2016 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
In short, dividend-bearing stocks are one of the smartest approaches stock investors have available currently. The same is true in strong ec...
-
If your growth-investing days are over (or nearly so) and you're more interested in steady income, start your search with all-weather st...
-
Even in the current inflationary environment, where stocks across a wide variety of sectors are trading down, companies with a favorable his...
-
Finding cheap dividend stocks is critical for another reason. By the time the Federal Reserve meets for the second time in 2023, the central...
-
Investing in passive income can allow you to make money with minimal portfolio management. There are many types of investments to make passi...
-
Many companies make very predictable fixed dividend payments each quarter. When they do, their investors have a pretty good idea of how much...
-
As 2022 wraps up, many investors are likely looking for ways to position their portfolio for more macroeconomic uncertainty next year. After...
-
Linked here is a detailed quantitative analysis of Chevron Corporation (CVX). Below are some highlights from the above linked analysis: Comp...
-
Warren Buffett's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) is crushing the market this year as value and dividend stocks have pulle...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.