Prediction: 3 Dividend Stocks That Will Cut Their Payouts Within the Next 3 Years
Investors who rely on these payouts may be disappointed.
Overview
News of a dividend cut is not something any investor wants to hear. The stock can plummet afterward, and the dividend income will be a fraction of what it was before. If a company deploys a cut, it'll want to be confident it gets it right to avoid having to do so again in the near future. That's why cuts normally are steep and aren't just modest reductions. They happen when things have gone incredibly badly for their respective businesses.
That also means, however, that investors may be able to spot warning signs in advance. There are three dividend stocks that I believe may be headed for trouble, and which I predict will slash their payouts within the next three years: Kraft Heinz (NASDAQ: KHC), Western Union (NYSE: WU), and Nike (NYSE: NKE). Here's why I think the writing is on the wall for these stocks and their payouts.
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Originally published at www.fool.com.