3 Dividend Stocks That Are Too Unsafe
Income investors are often drawn to high yields like moths to a flame. But prudent investors always check the payout ratios -- the percentage of a company's earnings or free cash flow that a company spends on dividends. If those ratios exceed 100%, that dividend is probably unsustainable in the long run.
Moreover, if a company's earnings and free cash flow growth are declining, the dividend and stock price could both be due for a haircut. Let's examine three dividend stocks that fit that description: Guess (NYSE: GES), Abercrombie & Fitch (NYSE: ANF), and Qualcomm (NASDAQ: QCOM).
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Source: Fool.com
Qualcomm Inc. Stock
€158.50
3.210%
The stock is one of the favorites of our community with 47 Buy predictions and 2 Sell predictions.
With a target price of 178 € there is a slightly positive potential of 12.3% for Qualcomm Inc. compared to the current price of 158.5 €.
