This High-Yield Dividend Stock's Turnaround Is Not Going Well
A large dividend yield can be a sign of opportunity for an income investor, or a sign that a dividend cut is on the horizon. Telling the difference between the two situations often boils down to two things: the company's financial performance and its commitment to sustaining the dividend payment.
Consider consumer products maker Newell Brands (NASDAQ: NWL), which has a huge 8.8% dividend yield. Yet, as the company works to turn its business back in a positive direction, there are uncertainties. Let's see what this could all mean for investors.
Newell's top line fell 24% year over year in the first quarter of 2023. That includes a divestiture, so the numbers aren't quite as bad as they may seem. However, with core sales down 18% from a year ago, it is hard to suggest that the owner of iconic brands like Rubbermaid, Coleman, and Sharpie is firing on all cylinders right now.
Source Fool.com
