Dividend Cut Alert: 2 Popular High Yields Getting Too Risky

Apr. 29, 2025 8:30 AM ET, , , , , 46 Comments
(7min)

Summary

  • Two popular high-yield stocks flashing major warning signs for income investors.
  • Chasing sky-high dividends could be setting you up for a painful payout cut.
  • Hidden risks are lurking behind two of today’s most tempting high-yield opportunities.
  • Looking for a portfolio of ideas like this one? Members of High Yield Investor get exclusive access to our subscriber-only portfolios. Learn More »
Red down zigzag arrow forming a percentage sign in a yellow background. Illustration of the concept of interest rate fall

Dragon Claws/iStock via Getty Images

High-yield stocks often attract income-focused investors because they offer the potential to accelerate their retirement dreams by earning them higher amounts of dividends than they would otherwise if they invested in more normal or even low-yielding stocks. However, when it comes to

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This article was written by

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Samuel Smith has a diverse background that includes being lead analyst and Vice President at several highly regarded dividend stock research firms and running his own dividend investing YouTube channel. He is a Professional Engineer and Project Management Professional and holds a B.S. in Civil Engineering & Mathematics from the United States Military Academy at West Point and has a Masters in Engineering with a focus on applied mathematics and machine learning. Samuel leads the High Yield Investor investing group. Samuel teams up with Jussi Askola and Paul R. Drake where they focus on finding the right balance between safety, growth, yield, and value. High Yield Investor offers real-money core, retirement, and international portfolios. The services also features regular trade alerts, educational content, and an active chat room of like minded investors.

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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