These 3 Dividend Giants Are Safer Than You Think

Income investors rely on the dividends that their favorite stocks pay. The worst news those investors can get is that a company has had to cut its dividend. That might not seem like something that would happen very often, but investors in blue-chip conglomerate General Electric are just the latest to learn that even the largest companies can face financial challenges that threaten their ability to pay dividends.

Recently, Coca-Cola, Merck, and Chevron have faced challenges that have sent their dividend payout ratios above the 100% mark. That's usually a sign of danger for dividend stocks, but in these three cases, there are good reasons why investors shouldn't panic. Below, we'll look more closely at these three companies to show you why they're safer than they look at first glance.

Source: Motly Fool

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