Beware! 3 Dividend Stocks Waving Massive Red Flags Right Now

Many investors choose to own high-yield dividend stocks for higher payouts. These companies pay a high percentage of their free cash flow to shareholders. Investors will often stick with a stock that is underperforming the market if it pays a high-yielding dividend. A reduced or suspended dividend payment will send investors screaming for the exits. Even the threat of a dividend cut is often enough to prompt a steep selloff in a stock. For these reasons, it is important for investors to keep an eye on any dividend stocks they own and be watchful of situations that could put the payment in jeopardy. Here are three dividend stocks waving massive red flags right now.

Beware! These three dividend stocks are in giant trouble. Icahn Enterprises (IEP): The dividend has recently been cut in half, causing the stock to fall 30%. Paramount Global (PARA): The entertainment company has slashed its dividend by nearly 80% amid poor earnings. Intel (INTC): The chipmaker cut its dividend payment to shareholders by two-thirds as it transitions its business.

Source: InvestorPlace

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