It’s dangerous to buy headline yields — or even supposedly “safe” blue chips with more modest dividends — without looking at the profits funding these payouts. Companies with high payout ratios (how much in earnings, funds from operations and other measures a company pays out in the form of dividends) are a twofold risk: 1. High payout ratios can lead to a slowing in dividend growth, which means your payout is increasingly likely to fall behind inflation. 2. High payout ratios are often an early warning sign of dividend cuts, or even outright suspensions. Let’s call out four stocks with skyrocketing payout ratios. All four are “stay aways” – and the names may surprise you...
The Coca-Cola Co (NYSE:KO) has been building out its non-cola brands for years – including the likes of Powerade sports drinks, Simply Orange juices and Dasani water – for precisely the possibility that is reality today. Centurylink Inc (NYSE:CTL) is in the same ilk as Frontier Communications Corp (NASDAQ:FTR), which cut its dividend a few months ago, and the aforementioned Windstream, which just killed its payout outright. The nice thing about energy pipeline master limited partnership (MLP) Plains All American Pipeline, L.P. (NYSE:PAA) is that there’s not much guesswork in whether the company is going to cut its distribution. Fashion retailer Guess?, Inc. (NYSE:GES) should have cut its dividend long ago.
Source: Income Investor
- 4 High Yield, High Risk Dividend Stocks
- 5 Dividend Stocks To Buy And Hold, Not Buy And Forget
- All Investments Carry Risk
- Warren Buffett's Two Investing Rules For Dividend Investors
- Dividend Stocks vs. Dividend ETFs
_____________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
There are some dividend aristocrats which have not only maintained but increased their dividends for over half a century. Having survived ev...
-
Do you need more income? Join the crowd. It seems everyone is scouring the landscape these days for decent income investments to beef up the...
-
In bull markets, dividends become more or less irrelevant. When the Dow Jones Industrial Average traded above 14,000 in 2007, very few stoc...
-
Investors hear about dividend aristocrats all the time. It’s a fantastic thing if a company raises its dividend every year for 25 years runn...
-
While I've invested a decent portion of my portfolio into growth stocks, a significant part of my holdings consists of dividend-paying s...
-
Stocks can make for amazing investments, offering better long-term returns than bonds, precious metals, and most other commonly available in...
-
All too often when a cheap stock offers a high dividend yield, it's too good to be true. Perhaps the stock has plunged with good reason,...
-
Anxiety over the European debt crisis and distrust in the markets drove volatility in global stock markets to dizzying heights in 2011. The ...
-
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 ...
-
To alert investors of stocks that have the highest risk of reducing their current dividend in the future, Simply Safe Dividends created a Di...
0 comments
Post a Comment
Post a Comment