3 Dividend Stocks at Risk
Corporate management can often paint a rosy picture complete with optimist earnings guidance. But these forecasts are often biased to the upside. This is why cash dividends are important to investors. They provide a tangible measure of a company's success and a signal of future corporate stability. When companies raise dividends, this is a tangible signal of future strength. When a company decreases its dividend, it signals future fundamental weakness. Beware of the dividend paying stocks listed below. We speculate that their yields could be at risk.
1. Nokia Corp (NOK)
Dividend: $0.46 / 7.00%The cellphone maker has had a rapid fall from grace. Despite still being one of the world's largest smart phone and cell phone makers, the company stock price dropped from around $40 in early 2008 to the current price of around $6. During this period, total cash dividends paid have decreased from $2.887 billion to... Read more