XOM - Danger Lurks for These 3 High-Dividend Stocks
Yes, there is too much of a good thing when that good thing is a dividend that's unsustainable. ExxonMobil (NYSE: XOM) , Archrock (NYSE: AROC) , and ONEOK (NYSE: OKE) are all enticing right now because their dividends yield close to 10%, but that has more to do with their falling share prices than their dividend policy.
If and when these companies cut their dividends, their share prices could plunge further, leaving investors in their wake.
Not surprisingly, all three of these companies are energy stocks , a sector whose shares have fallen an average of more than 42% this year, due to an overabundance of oil and gas reserves and lowered demand because of the coronavirus pandemic.
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Danger Lurks for These 3 High-Dividend Stocks