These High Yield Stocks Could Get Their Dividends Cut
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- čas přidán 29. 02. 2024
- In this video we’re gonna take a look at three popular high yielding investments that are currently at an elevated risk of seeing a dividend cut. In the case of all three of these investments, the main reason I believe these investments could potentially see a dividend reduction is because they’ve been reporting pretty bad financials that suggest they won’t be able to fully cover their dividend at their current rate, or the management has provided a poor outlook. I won’t say these investments are guaranteed to go through a dividend cut, as they could still potentially post some really outstanding results in their next quarter. But as I’ll go into detail for each company, there’s at least a strong likelihood of a cut because they aren’t earning enough income to sustain their existing dividend.
/ dividendbull
EFC, OXLC, MMM
You're a hero.
Da real MVP
Thank you.
Thank you
I bailed out of EFC and AGNC this morning. I had been waiting for a good opportunity to exit these and since it seems like they are both going to cut their dividends, I finally pulled the trigger.
Not to nitpick, but you said MMM is the highest yielding dividend king which although high at 6.5% is not technically correct as both MO and LEG are dividend kings that are higher both yielding over 9%.
Of those you mentioned I only own MMM and although under stress due to the lawsuits it has been resolving these issues and I think they will maintain the dividend IMHO. I've been wrong before so who knows.
Surprised you didn't mention LEG. Now there's a dividend king I'm worried about, but I think again IMHO they will do everything possible to maintain their dividend streak. If we go into a recession they may be forced to cut it as things are already very tight.
I also hold MMM and I'm hoping the price gets beat up some more so I can buy even more. Lawsuits are a temporary condition to a company that is more than century old.
@@TheBrokenLife If there are lawsuits against a company, it would actually make me NOT want to buy the stock.
@@wewhoareabouttodiesaluteyo93031 - Every company worth owning is always involved in some sort of litigation, and 2- 3M's big legal problems, the ones that halved the share price, are already behind them.
This is the "buy low" part of the equation. I just think "low" will get lower first. Then, some day, I will get to the "sell high" part. Or if the share price recovers to the ATH, enjoy my effective 20% dividend rate until death.
@@wewhoareabouttodiesaluteyo9303 These lawsuits have been settled and are in the past. This is the "buy low" so you can "sell high" later.
EFC has already announced a cut, .15 to .13
Oxlc has been one of my best so far. We will see how it holds up.
3M has a LOT of cash. Their fines will be paid out over several years. Should you do a complete analysis you will find 3M will be just fine to weather the storm.
What do you think of ready capital right now, is it a good time to buy... Price been dipping more and more. I do have shares of rc, not going to sell, but not sure if I should buy more.
OXLC raised dividend to .09 in July! Is this a hold or no?
Excellent video thanks. I own little bit of EFC
I sold my shares of EFC, OXLC, MMM & LEG last year. However, for my portfolio, I do have a 4.2% interest in ACRE which has me a bit concerned. I started to divest myself of it when they cut the .02 cent supplemental, but now that they’ve cut their .33 cent dividend down to .25 cents & the stock price has dropped significantly- I may wait around a little longer since I missed the boat.
Would like you to do an update video on ACRE & ARCC.
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I don't have any of these. However I did put in an order for 750 shares of VICI at 1 penny less than the current days low.
Efc was a good call, a dividend cut was announced yesterday from 15 cents to 13.
They announced a 2 cent cut at earnings presentation for EFC
SVOL and SPYI are still my go to monthly investments.
Thanks.😮
I had a smallish position in MMM but sold. I would not be surprised if that div gets cut, but I wouldn't be surprised if it doesn't get cut either since I'm sure the company is being ran by some of the best minds the industry has to offer. I just moved the money to a different stock that I believe has more potential for profit.
They'll increase it by $0.01 and continue the streak. I have no doubt.
I surprised you didn't mention companies ftom your portfolio - ACRE and RC
Because ACRE already did a cut
RC has $6B in liabilities.
MPW?
They already cut.
Good balance sheet, but bad EPS.
Figured I see MPW on here but they should be good for a few more quarters especially if they can turnaround soon, looks like they're making slow progress.
can you make a video about BIZD?
Dang raw dawg.
Think maybe a couple of long puts may be in order here
Acre
Breaking news ? EFC announced a div cut before this video was published. Be careful with your reputation
lol
It's dividedover!
EFC is cutting it to .13.
WBA
I get a cool $50 a month from EFC. It fills my truck. But all good things must end😢
STK is still killing it in my portfolio. ❤
STK has a negative EPS, but an unreal balance sheet. It has almost no liabilities.
MMM is my choice?
For what?
Whenever there's a word " Mortgage " its already a big red flag waving infront of your screen.
I bought ACRE on your recommendation. Down nearly 40% and a 25% dividend cut! You sure know how to pick em!
Acre is bad. Sorry to hear that from you. Do your own research because this channel is good for presenting companies to look into but not direct investment recommendations. For example, he talked about 3m in this video but that company is down 55.77% in the past 5 years.
@@RA-ie3ss I know that! It's the life of an investor.
ACRE still has a relatively high starting dividend yield. It will bounce back, eventually
Dividend Bull doesn’t recommend you buy any stocks he just does analysis’s or talks about his portfolio.
#1 Do your own research
#2 Not everyone can pick the best stock not even Warren buffet
#3 if you don’t like loss then don’t invest
I have none of them.
O and MAIN maybe next. O and MAIN are paying too much in their dividend.
MAIN has a really good balance sheet and they pay within their EPS. I would be suprised. O I would think because they pay more than their EPS and have way more liabilities on their balance sheet.
MAIN just announced a special dividend for March on top of their regular monthly dividend. Sounds pretty healthy to me.
@@TheBeagle1956 It pays out more than its EPS when it keeps issuing special dividends.
O is a REIT, to determine the payout ratio you look at AFFO not EPS. For 2023 their payout ratio was around 75%. A fairly reasonable number for a REIT.
@@johnsmith-wt5dz
Correct! 👌 Someone who only looks at EPS in regards to REITs clearly doesn’t know anything about REITs 😅
AFFO - that’s what matters the most in terms of dividend safety if you look at REITs.
NEP
Good balance sheet, but pays out more than its EPS.
It is all about the balance sheets. Let's compare...
EFC = $12B in liabilities, 3M $40B in liabilities
Ones I did not expect:
OXLC. It has a healthy equity to its liabilities.
WTF 😂