Danger Lurks for These 2 High-Yield Dividend Stocks
Income investors should never take dividend income for granted. Payouts are always discretionary, and companies can reduce or eliminate them due to poor performance or just a change in strategy. A rate cut could put you in a difficult situation because it may also send a negative signal to the markets that leads to a sell-off, leaving you with not just a reduction in dividend income but also a dent in your overall investment.
The warning signs aren't always obvious that a stock is in trouble or that a possible reduction in its dividend is coming. But two income stocks that you should be wary of right now and pay close attention to are Merck (NYSE: MRK) and AT&T (NYSE: T).
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Source Fool.com
