3 Dividend Stocks That Are Too Unsafe

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