Ouch! While the broader market started out 2012 with a bang, there are a number of companies that didn't fare too well. And while dividends are supposed to stabilize a stock's price, I'm going to show you that this isn't always the case.
Below I've covered two of the worst performers from the Dow Jones Industrial Average, two underperformers from the S&P 500, and one from the broader market. Add these stocks to your watchlist to see if a turnaround is imminent, and at the end I'll offer you access to a special free report on dividends you can actually count on.
First, our losers from the Dow
Procter & Gamble
But before you run for the exits, take note that this decline was largely due to a non-cash writedown. Without that, earnings would have been flat year-on-year, which still isn't the greatest news in the world. But investors can be comforted by the company's 3.3% dividend yield being paid out while waiting for the company to improve performance.
The worst-performing stock on the Dow Jones so far in January was Verizon
Next, the S&P 500 laggards
Following in SUPERVALU's footsteps was the S&P 500's poorest-performing stock in January: R.R. Donnelly & Sons
One more stock behaving badly
From the thousands of stocks not listed on the S&P or Dow, my pick for poorest-performing dividend stock in January is propane provider Inergy
- Add Inergy to My Watchlist.
You're better off here
Dividend investors know that these companies are only worth investing in if the underlying businesses are sound, and the company will be able to continue paying out larger and larger dividends. In that vein, our team of analysts has put together a report just for you: "Secure Your Future With 11 Rock-Solid Dividend Stocks." Inside, you'll get the names and the scoop on these 11 companies paying out solid dividends to investors. Get your copy of the report today, absolutely free!
The Motley Fool owns shares of SUPERVALU. Motley Fool newsletter services have recommended buying shares of Procter & Gamble and buying calls in SUPERVALU. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.