Yesterday, I used the new CAPS screening tool to dig up some of the CAPS community's favorite dividend payers. As I cautioned at the time, even though most of the stock market's gains come from dividends, high yields aren't all gumdrops and rainbows. Fools who want to avoid dividend implosions also need to make sure a company is healthy enough to support a large dividend.
With that in mind, I used our new CAPS screening tool to find out which dividend payers CAPS players are most skeptical of. Below are 10 companies with dividend yields of 4% or more.
They also have:
- Market caps greater than $1 billion.
- One-star ratings, the lowest possible, from our CAPS community.
Remember, in the first year for which we have data, one-star companies flamed out with an average loss of nearly 17%.
|
Company |
Share Price |
Sector |
Market Cap |
|---|---|---|---|
|
Bear Stearns |
$10.67 |
Financial |
$1.8 billion |
|
Daimler AG |
$79.41 |
Consumer goods |
$80.5 billion |
|
Fannie Mae |
$30.02 |
Financial |
$29.4 billion |
|
Fifth Third Bancorp |
$21.01 |
Financial |
$11.7 billion |
|
Fortress Investment |
$14.59 |
Financial |
$1.4 billion |
|
General Motors |
$21.94 |
Consumer goods |
$12.4 billion |
|
KB Home |
$23.72 |
Industrial goods |
$2.1 billion |
|
MBIA |
$10.41 |
Financial |
$2.5 billion |
|
The New York Times |
$20.31 |
Services |
$2.9 billion |
|
Warner Music Group |
$8.46 |
Services |
$1.3 billion |
Are these dividend duds? Or are they simply misunderstood? Come and join us on Motley Fool CAPS to let us know what you think. Our 100,000-strong (and counting) CAPS community wants to hear your opinion.
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