Pfizer's Earnings Have Declined 58% This Year. Is a Dividend Cut Around the Corner?
The stock's 6.4% yield is attractive, but it comes with risk.
Overview
Dividend cuts don't typically happen without warning. Investors can see a business that's in trouble. Perhaps it's in the midst of a turnaround, it's restructuring, or its profits are simply declining, and the dividend may no longer be sustainable. These are all things to watch out for and consider before investing in a stock for its dividend.
Pfizer (NYSE: PFE) is a top healthcare stock, which investors have relied on for years for its growth and reliable payouts. But recently, it has had trouble attracting many investors due to question marks around its growth prospects and its poor financials. This year, its earnings are down big. Does that mean a dividend cut could happen soon?
Image source: Getty Images.
Details
Source
Originally published at www.fool.com.