Updated: January 4, 2016
With the first trading day of the New Year upon us, it’s time to clean up that portfolio. Get rid of those dividend dogs, and replace them with winners that’ll boost payouts and appreciate in price in the year ahead.
First, let’s call out the paper payout tigers. These stocks may look good on paper (thanks to their yields) – but if you own them, you should sell these ticking time bombs. Best case, they’ll see marginal dividend growth in 2016. Worst case, they’ll chop their payouts – their stocks will get punished by 20% or more.
Dividend Dogs of 2016
Mortgage REITs should be sold immediately, such as poster child Annaly Capital (NLY).… Read more