The Motley Fool

Are These 3 Dividends In Danger?

For investors simply relying on the “Summary” page of Google- or Yahoo! Finance for the data used in investing decisions, a high dividend yield can be awfully misleading. Dividend yields are often allowed to reach peer-leading heights by an increasing tolerance for higher payout ratios (i.e. Dividends per Share / Earnings per Share). What should be examined at companies pushing the upper bounds of the payout ratio spectrum is their leverage situation, which will hint at the company’s ability to maintain that high distribution.

Several major energy and materials producers fell under the net of my screen for companies with debt-to-equity ratios higher than 50% in tandem with payout ratios above 75%. For my take on if three of these particular companies have put their dividend and, in turn, your investment income at risk, tune in below.

The Motley Fool’s Special Free Report13 High Yielding Stocks to Buy Today” offers a perfect way to diversify your current dividend stock holdings.  This report is sure to have you rolling in dividend cheques from a variety of sources before you know it!  Simply click here and we’ll send you this report – FREE!

Follow us on Twitter and Facebook for the latest in Foolish investing.

This video was created by Taylor Muckerman, a contributor to

Fool contributor Taylor Muckerman does not own any of the companies mentioned in this post at this time.  The Motley Fool doesn’t own shares in any of the companies mentioned.   


The 10 Best Stocks to Buy This Month

Renowned Canadian investor Iain Butler just named 10 stocks for Canadians to buy TODAY. So if you’re tired of reading about other people getting rich in the stock market, this might be a good day for you. Because Motley Fool Canada is offering a full 65% off the list price of their top stock-picking service, plus a complete membership fee back guarantee on what you pay for the service. Simply click here to discover how you can take advantage of this.

Click Here to Learn More Today!

I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls. I understand I can unsubscribe from these updates at any time. Please read the Privacy Statement and Terms of Service for more information.