Numerous high-quality dividend opportunities are up for grabs at the moment, which may be appealing to some investors given the uncertainty embedded in today’s market environment. Furthermore, many investors might fancy dividend stocks in the current market climate due to the lackluster performance of fixed-income securities. And, typically it is better to hold onto dividend stocks long term and never think of them as ones to sell. Although I agree with such a mindset, there are currently various risks attached to certain high dividend payers. For one, nominal earnings in the U.S. are receding, leaving less scope for payout ratios to increase. In addition, some stocks simply possess too much price risk, meaning their illustrious dividend profiles account for little.
Here are three dividend stocks to sell that I believe could feel the pinch in the coming quarters that you should avoid or sell these three dividend stocks before they plummet: Anglo American Platinum (OTCMKTS:ANGPY): Another disappointing production report has counteredaa any dividend benefits. CTO Realty Growth (NYSE:CTO): A cyclical portfolio means the yield curve’s positioning and rising credit spreads may lead to diminishing value. British American Tobacco (NYSE:BTI): The diminishing popularity of tobacco products is bad news for BTI stock long-term.
Source: InvestorPlace
Related Articles:
________________________________________________________________
Subscribe to:
Post Comments (Atom)
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.