Readers sometimes ask why I recommend stocks that recently cut their dividends. It’s a reasonable concern. Strong companies, by and large, boost their payouts, so slashing the distribution probably signals that something is wrong. Dividend cutters, however, often represent remarkable bargains. After companies slash their payouts, investors all tend to dump their shares at the same time. During these occasions, you can sometimes pick up good, albeit slightly damaged, assets for pennies on the dollar.
Case in point: Dynagas LNG Partners LP (NYSE:DLNG). This limited partnership owns dozens of ocean vessels that ship liquefied natural gas around the world. And while the company’s dividend history has a few blemishes, units could represent a real bargain for income investors. In April, Dynagas cuts its distribution by 41%. Simply put, management fell into the trap many businesses fall into: they committed to a large payout supported by unsustainably high profits during the “good times.”
Source: Income Investors
Related Articles:
- What's Your Retirement Vision?
- The Most Important Financial Statement When Selecting Dividend Growth Stocks
- Stock Dividends, The Gift of Nothing
- What's More Powerful Than Compound Interest?
- Dividends vs. Stock Buybacks
Dividend Growth Stocks News
- Isabella Bank And 2 Other Top Dividend Stocks To Consider - Yahoo Finance - 5/15/2025
- 3 High Dividend Stocks To Sell - Barchart.com - 5/14/2025
- 3 Top Dividend Stocks to Maximize Your Retirement Income - Yahoo Finance - 5/15/2025
- 3 Magnificent S&P 500 Dividend Stocks Down 62%, 63%, and 64% to Buy and Hold Forever - The Motley Fool - 5/14/2025
- 3 Asian Dividend Stocks Yielding Up To 6.1% - Yahoo Finance - 5/15/2025
- Air Products and Chemicals Inc. (APD) Dividend Stock Analysis - 5/9/2025
- Waste Management, Inc. (WM) Dividend Stock Analysis - 5/2/2025
- Wal-Mart Stores, Inc. (WMT) Dividend Stock Analysis - 4/25/2025
- Abbott Laboratories (ABT) Dividend Stock Analysis - 4/18/2025
- General Dynamics (GD) Dividend Stock Analysis - 4/11/2025
Can You Count on This 12.1% Yield?
Posted by D4L | Saturday, August 25, 2018 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.