GLD - An Important Warning For Dividend Investors
2024-06-03 07:04:00 ET
Summary
- Dividend stocks have struggled in recent years due to rising interest rates and companies cutting or eliminating their dividends.
- We look at some concerning storm clouds brewing on the horizon for the sector.
- We also share some of our top picks for navigating the current choppy waters in the sector.
The past few years have been very tough for dividend stocks ( SCHD ), particularly sectors like REITs ( VNQ ), renewable power companies ( BEP ), and utilities ( XLU ), which have been hammered hard as rising interest rates have taken a toll on their capital-intensive and yield-sensitive business models. Additionally, numerous high-yield stocks have been completely decimated as they've had to either deeply cut or eliminate their dividends, including Lumen Technologies ( LUMN ), Medical Properties Trust ( MPW ), Hanesbrands ( HBI ), and Algonquin Power & Utilities ( AQN ). Perhaps most alarmingly, the Dividend Aristocrats ( NOBL ) and Dividend Kings have suffered several casualties lately, with Legget & Platt ( LEG ), 3M Company ( MMM ), V.F. Corporation ( VFC ), Walgreens Boots Alliance ( WBA ), and W. P. Carey ( WPC ) all slashing their dividends recently....
An Important Warning For Dividend Investors