Lackluster Earnings Mean These 2 Cheap High-Yield Stocks Probably Can't Grow Their Dividends Right Now

Energy infrastructure companies Targa Resources (NYSE: TRGP) and CorEnergy Infrastructure Trust (NYSE: CORR) both have something that would catch the eye of income-focused investors: a yield north of 8%. One reason both stocks have such elevated payouts is that they trade at relatively cheap prices. CoreEnergy, for example, sells for less than 10 times cash flow, while Targa goes for around 13 times, both below the mid-teens multiple of their peer group.

However, the reason both sell for such low prices is that neither appears to be in the position to increase their payouts anytime soon. For evidence, we need only look at their rather lackluster third-quarter results.

While investors should continue collecting these lucrative dividends, neither company appears to be in a position hand out any more cash. Image source: Getty Images

Source: Fool.com