3 Reasons to Sell RadioShack

Updated

Consumer goods analyst Austin Smith takes a bearish perspective on RadioShack . While the company does have plenty of exposure to the growing mobile industry, this trend is not as big a boon to retailers like RadioShack or BestBuy as it is for the handset manufacturers. Over the last year, RadioShack's operating margin fell to a razor-thin 2.1%. Not only that, but consumers can easily move online for higher-margin purchases. With growing competition, including by partners AT&T , Sprint ,and Verizon , now might be the right time to sell your position in RadioShack.

If there is one thing to love about RadioShack, though, it's its double-digit dividend. At 13%, it stands head and shoulders above the competition. However, the quality of the dividend is something else entirely. RadioShack's success is built on less-than-solid ground. Instead you should look at those huge winners outlined in our report "Secure Your Future With 9 Rock-Solid Dividend Stocks." You can access your complimentary copy today! Just click here to discover the winners we've picked.

At the time thisarticle was published Austin Smith has no positions in the stocks mentioned above. The Motley Fool owns shares of Apple, Best Buy, and RadioShack. Motley Fool newsletter services recommend Apple. 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.

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