Don't Fall for These 2 Dividend Stocks: Cuts Are Coming
The pandemic has had a lasting impact on the demand for office space. Many employees continue to work remotely, at least part of the time. So office landlords are struggling to fill up their vacant space, which is impacting their rental income.
As a result, several office REITs have recently slashed their dividends. For example, Manhattan's leading office landlord, SL Green Realty, ended more than a decade of consecutive increases by announcing a 13% dividend cut in December. Fellow office-focused REITs Vornado Realty Trust and Douglas Emmett also cut their payouts, with Vornado's falling 29.2% and Douglas Emmett's decreasing by 32%.
More office REIT dividends seem destined to fall. The most likely dividends to get cut next are the ultra-high-yielding payouts by Brandywine Realty Trust (NYSE: BDN) and Office Properties Income Trust (NASDAQ: OPI). Here's why it looks like those dividends are on the chopping block.
Source Fool.com
