A Reduced Payout Could Be in the Cards for These High-Yield Dividend Stocks

Dividends can have a huge impact on investor returns over the long term, so dividend-paying stocks have increasingly become mainstays in investment portfolios. However, not all dividend stocks are created equal, especially when considering companies with high-yield dividends. Sometimes those payouts just aren't sustainable, which can make investing in companies like these two a bit more risky.

Dan Caplinger: One dividend stock that I'm particularly worried about is Transocean (NYSE: RIG), which on a trailing basis now has the highest yield of any stock in the S&P 500. Leo Sun: Windstream Holdings (NASDAQ: WIN) provides network services to U.S. businesses and is the eighth-largest residential telephone provider in the nation. Simply put, huge payout ratios, weak earnings, and an unexpected CEO departure are bright red flags indicating that additional dividend cuts could be right around the corner.

Source: Motley Fool

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