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9/03/2011

10 Not Sustainable Dividend Stocks

10 Dangerous Dividends to Avoid By Fool. Today's current low-interest-rate environment has made income-producing stocks all the rage. And while we certainly support looking at income producers in general, maintaining a "guilty until proven innocent" approach in assessing dividend stocks will save the average investor from a lot of future heartache. In that vein, I want to highlight 10 stocks from the industrial arena that investors should approach with extreme caution.

The companies below all pay out more than three-quarters of their reported net income in the form of dividends. And while this can mean many things, investors everywhere need to look at such figures with a healthy dose of skepticism.


Company
Dividend Yield
Payout Ratio



Harsco (NYSE: HSC  )
3.60%
362.60%
Baltic Trading Limited
8%
296%
Universal Forest Products (Nasdaq: UFPI  )
1.30%
234.10%
Standard Register
7%
182.50%
R.R. Donnelley & Sons (Nasdaq: RRD  )
7%
170.10%
Douglas Dynamics (NYSE: PLOW  )
5.60%
155.80%
HNI (NYSE: HNI  )
4.50%
128.20%
Briggs & Stratton (NYSE: BGG  )
2.70%
91.70%
Pitney Bowes (NYSE: PBI  )
7.40%
88.70%
Alexander & Baldwin (NYSE: ALEX  )
3%
76%


Related Stock Ticker:
HSC, UFPI, RRD, PLOW, HNI, BGG, PBI, ALEX

Source: Fool.com

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