Not exact matches
The image below shows the
dividend safety score for IBM, now IBM has a great
dividend history and is in a strong financial position, but notice that the
dividend safety score is already beginning to issue warning
signs.
Like the
dividend yield factor, this is another counter intuitive metric, where we typically like to shop for stocks in the oversold bin, but from a
dividend safety perspective, it is a potential warning
sign.
C ratings still generally provide investors with a reasonable margin of
safety that the
dividend is sustainable, but many
signs are beginning to appear that a cut could potentially be on the way, it is important for investors to do further research before owning these names, as a
dividend cut would likely bring a stock price decline.
However, as most of us know, high yields often serve as a warning
sign about a company's health and
dividend safety.
Signs and warning flags you can use to evaluate the
safety of a company's
dividend payment stream.