7 Dividend Stocks That Could Struggle to Continue Payout Hikes

Investors tend to gravitate to dividend stocks, particularly when those equities increase their payout on an annual basis. When these types of stocks achieve 25 consecutive years of payout hikes, analysts refer to them as “dividend aristocrats.” Other dividend stocks with a history of annual dividend hikes now find themselves struggling. For these equities, profit growth has become challenging. Moreover, they have high dividend payout ratios — the percentage of profit a company pays out in dividends. This increases the odds of a dividend cut, and firms that cut dividends after years or decades of annual payout hikes tend to suffer for an extended period...

Dividend Stocks That Could Struggle: 3M (NYSE:MMM) is one of the most respected dividend stocks in existence today. Coca-Cola (NYSE:KO) should serve as a lesson that some dividend stocks can become victims of their own success. General Mills (NYSE:GIS) prospered for decades by producing necessary, recession-proof products. IBM (NYSE:IBM) has become one of the dividend stocks in transition. This time last year, ask the average American about Johnson & Johnson (NYSE:JNJ), and they would have described it as the respected company that has provided generations of Americans with high-quality personal health products. The problems for McDonald’s (NYSE:MCD) mirror those of dividend stocks such as Coca-Cola in many respects. Procter & Gamble (NYSE:PG) has prospered over the decades by providing products as a leader in mundane but necessary products.

Source: InvestorPlace

Related Articles:
- What Determines A Dividend Stock's Yield
- 5 Dividend Stocks Yielding Over 3%, With Tiny Payout Ratios
- Warren Buffett's Secret To 50% Returns
- 5 Undervalued, Big-Name Stocks To Consider For Your Dividend Portfolio
- 4 High-Yield Energy Stocks Growing Their Dividends