Is Windstream The Next Dividend Death Trap?

As the saying goes, once you hit the top, there's nowhere to go but down. That's especially true for companies making it to the list of the top five highest-yielding stocks in the S&P 500. Consider the following: Over the last year or so, Frontier Communications (FTR), RadioShack (RSH), and CenturyLink (CTL) all spent time on the list. And, lo and behold, their dividends got slashed and share prices cratered. Pitney Bowes (PBI) is the latest company to join the ranks of these dividend disappointers. On Tuesday, management announced that first-quarter earnings sank 57%, and they were cutting the dividend in half -- from $0.375 per quarter to $0.1875. As Chief Executive Marc Lautenbach said, "This action will provide us the added financial flexibility to invest in the business and enhance our capital structure, while continuing to provide a very competitive return to shareholders." Sure.... Read more