SBRA - Is a Dividend Cut Inevitable for These 2 High-Yielding Stocks?
High-yielding dividend stocks can be great to own, but they can end up being losing investments if their payouts are unsustainable. There's nothing like a dividend cut to send the price of an income stock into a deep tailspin. High dividend yields are often cited as a primary reason for buying these stocks. It certainly isn't because of their stock price growth potential. If the reason goes away, so does the investor interest.
Two dividend stocks with high yields that are also dealing with high payout ratios that investors might want to watch carefully are Sabra Health Care (NASDAQ: SBRA) and Kraft Heinz (NASDAQ: KHC) . Those high dividend yields might be tempting, but are they safe? Should investors expect a dividend cut?
Sabra Health is a real estate investment trust (REIT) that's focused on healthcare , with skilled nursing and transitional-care facilities accounting for two-thirds of the 407 properties in its portfolio. It also has more than 100 senior housing properties. Year to date, its shares are down roughly 9%, but still doing better than the S&P 500 , which is down 17%.
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Is a Dividend Cut Inevitable for These 2 High-Yielding Stocks?