Big Dividend Stocks That Were Slaughtered in January

Ouch! While the broader market started out 2012 with a bang, there are a number of companies that didn't fare too well. And while dividends are supposed to stabilize a stock's price, I'm going to show you that this isn't always the case. Below I've covered two of the worst performers from the Dow Jones Industrial Average, two underperformers from the S&P 500, and one from the broader market. Add these stocks to your watchlist to see if a turnaround is imminent, and at the end I'll offer you access to a special free report on dividends you can actually count on.

The worst-performing stock on the Dow Jones so far in January was Verizon, down 6.26%. The company reported earnings that were quite confusing: a non-GAAP earnings per share of $0.52, versus a GAAP result of a loss of $0.71 per share. The major differentiator: pension costs, which rang in at $3.4 billion for the quarter. And even though the company had record revenue, the costs of subsidizing popular smartphones put a serious crimp in margins. It kind of makes you wonder if the company's 5.4% dividend is worth it. Procter & Gamble hasn't had the worst January ever, but with a 5.25% decline in price as of Monday's close, it was the second-worst performer for the average on a price basis. The company reported earnings this month that were down a whopping 49% from a year ago.

Source: MSNBC

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