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Motley Fool
A Reduced Payout Could Be Coming for These High-Yield Dividend Stocks
When investors look for dividend stocks, they should generally avoid companies in fading industries (like big tobacco), companies that regularly pay out over 100% of their earnings or free cash flow (FCF) as dividends, and companies that only pay high yields because their stocks have been crushed. Here are three high-yield stocks that fit those three categories, respectively — Intel (NASDAQ: INTC), Xerox (NYSE: XRX), and Nintendo (OTC: NTDOY). Intel pays a forward yield of 2.5%, its dividends consumed just 29% of its FCF over the past 12 months, and the chipmaker has raised its payout annually for six straight years — and its stock trades at just 12 times forward earnings.
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