CA - Time To Sell: 3 Dividend Stocks With No Margin Of Safety

2024-03-20 18:40:54 ET

Summary

• In this article, I discuss three dividend stocks that offer little to no margin of safety from recent prices.
• Altria Group has struggled to turn around its core smoking market and faces challenges in growing newer businesses. There's a potential for a dividend cut.
• Archer-Daniels-Midland is an asset-heavy company with intense competition and no discernible competitive advantage. The recent rebound rally in price is unjustified.
• Procter & Gamble has little upside potential in the next five years and lacks a margin of safety.

Each month I feature several dividend paying stocks that I don't think offer any margin of safety based on their business and current stock price. This theme irritates some dividend yield chasers, so I encourage you to vent in the comments.

When investing, your goal ought to be to have a "margin of safety" on every investment you make. Margin of safety is the difference between a company's current share price and its intrinsic value. Consider this article series an early warning siren....

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