In an environment of ultra-low interest rates, dividend stocks have become a refuge for investors wanting to generate income. While many dividend stocks remain safe, COVID-19 has hit some hard. Companies such as BP, Ford, and Macy's had to reduce or suspend their dividend payouts amid harsh economic conditions.
Many companies, particularly in the energy industry, continue to forgo dividend cuts for now. Nevertheless, investors need to remain wary of large payouts, especially in the cases of Delek US Holdings (NYSE: DK), ExxonMobil (NYSE: XOM), and ONEOK (NYSE: OKE).
Many investors may not know the name Delek, which has operated since 2001 in refining and other energy-related industries. Refining is one of the less-affected sectors in the industry when oil prices fall. However, this downturn brought an unprecedented drop in demand.