2 Dividend Stocks With Payouts That May Not Be as Safe as They Seem
Investing in dividend stocks can seem like a great way to pad your portfolio's returns, especially when you're investing in dividend growth stocks that increase their payments over the years. The risk, however, is that investors often look at a stock's track record for paying dividends, and use that as a justification for why it may be a safe income investment to hold for the long term. But the past doesn't predict the future, and while a stock may have been a good dividend stock for years, that doesn't mean it will remain that way.
You only have to look at a couple of big-name dividend stocks as a reminder of that. Intel recently suspended its dividend, and pharmacy retailer Walgreens Boots Alliance slashed its payout by 48% back in January. Both companies are facing headwinds and have uncertain futures.
A couple of dividend stocks that could also be problematic income investments are Johnson Johnson (NYSE: JNJ) and Altria Group (NYSE: MO). Although they have great track records for paying dividends, here's why you'll want to think twice before relying on their payouts.
Source Fool.com
Intel Corp. Stock
Our community is currently high on Intel Corp. with 29 Buy predictions and 15 Sell predictions.
With a target price of 38 € there is potential for a 122.04% increase which would mean more than doubling the current price of 17.11 € for Intel Corp..
