PFE - These 3 Dividend Stocks Yield More Than 5% but Their Payout Ratios Are Over 100%. Are Dividend Cuts Coming?
2024-02-21 10:15:00 ET
High-yielding dividend stocks can make for attractive investments given the potential income they can generate for your portfolio. But there is often a trade-off when it comes to high payouts, as high yields may not always be sustainable.
One metric investors often rely on to help assess the safety of the dividend is the payout ratio . That's the percentage of a company's earnings that it pays out to its investors as dividend income. When it goes over 100%, this is a concern as it means the company isn't earning enough to cover its dividend.
Three stocks that pay more than a 5% dividend yield and also have alarmingly high payout ratios of more than 100% right now are Pfizer (NYSE: PFE) , Enbridge (NYSE: ENB) , and Philip Morris International (NYSE: PM) . Are these stocks that are likely to cut their payouts in the near future?
For further details see:
These 3 Dividend Stocks Yield More Than 5% but Their Payout Ratios Are Over 100%. Are Dividend Cuts Coming?