“Research shows that dividend cuts are associated with significant share price declines on announcement,” Cornell University Professor of Finance and Harold Bierman Jr. Distinguished Professor of Management Andrew Karolyi told InvestorPlace in an email. “Since dividends provide important signals about future earnings prospects (cuts imply uncertainty), they are often delayed, and are interpreted as a last resort action.” Dean Karolyi went on to say that the sectors most likely to see dividend cuts are those that have high yields and relatively high fractions of dividend-payers, compounded with “uncertainty about future earnings during the COVID crisis.”
With that in mind, here are 7 dividend stocks that could be in danger: Occidental Petroleum (NYSE:OXY), Schlumberger (NYSE:SLB), Ventas (NYSE:VTR), Dow (NYSE:DOW), WP Carey (NYSE:WPC), Kraft Heinz (NYSE:KHC), VF Corp (NYSE:VFC). With the market as volatile as it has been in recent months, it isn’t hard to imagine these stocks taking big hits in the near-future.
Source: InvestorPlace
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