The 7 Worst Dow Dividend Stocks for October

These components have little to offer income investors

      View All  
The 7 Worst Dow Dividend Stocks for October

#3: Alcoa

Alcoa185 The 7 Worst Dow Dividend Stocks for OctoberDividend Yield: 1.3%
Payout Ratio: N/A
YTD Performance: Flat

The woes of aluminum giant Alcoa (NYSE:AA) are pretty well documented, though — God love ‘im — InvestorPlace Editor Jeff Reeves still remains faithful to his 10 Best Stocks for 2012 pick.

Alcoa is off 50% from 2011 pricing and 75% in the past five years amid a slow, steady drumbeat of declining demand and soft prices … making its flat year-to-date performance a surprising silver lining.

AA shares paid 17 cents quarterly starting in January 2007, but its shares tanked and in March 2009 it shaved its payout to 3 cents. If that figure sounds familiar, that’s because it’s what AA is currently paying.

Also, take a gander at the company’s payout ratio — or lack thereof. See, you can’t figure out the percentage of earnings paid as dividends without actual earnings. And AA lost 13 cents a share including charges in the most recent quarter.

Translation: Don’t expect that dividend to improve anytime soon.


Article printed from InvestorPlace Media, http://investorplace.com/2012/10/the-7-worst-dow-dividend-stocks-for-october/.

©2014 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.