Why These Stocks Could See More Dividend Cuts

Updated

Millions of investors have turned to dividend stocks to provide income, and they can ill-afford to have those stocks cut their payouts right now. Yet in one sector, things look particularly dangerous for dividend investors right now.

In the following video, Fool markets analyst Mike Klesta talks with Fool contributor Dan Caplinger about this dangerous sector. As Dan notes, with large drops in revenue expected in the current quarter, several companies in the industry have already been forced to cut their dividends dramatically, and further cuts could come in the near future if prospects for the industry don't rebound quickly. Dan concludes with some guidance on what to look for in assessing whether the industry can avoid further problems down the road and how price increases in ETFs SPDR Gold and iShares Silver could help companies sustain their dividends.

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The article Why These Stocks Could See More Dividend Cuts originally appeared on Fool.com.

Fool contributor Dan Caplinger owns shares of Silver Wheaton. Mike Klesta and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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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