VTRS - 1 Reason I Wouldn't Buy This High-Yielding Dividend Stock
2023-07-20 09:20:00 ET
A high-yielding dividend stock can generate lots of dividend income for your portfolio. But that doesn't mean you should buy a stock only because of its yield. Dividends are never guaranteed and investors shouldn't assume they won't change or suddenly stop. Plus, it's also a good idea to invest in a growing company so that there's potential for the dividend to increase in the future.
Drugmaker Viatris (NASDAQ: VTRS) provides investors with a high payout, but I would avoid the stock for one big reason: It has a growth problem.
Viatris last reported earnings on May 8. For the first quarter, which ended on March 31, the company's net sales of $3.7 billion declined by 11% year over year. And even if you look at the operational change (which factors out the impact of foreign exchange), it still showed a 6% decrease from the prior-year period.
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1 Reason I Wouldn't Buy This High-Yielding Dividend Stock