Sponsored By:

3 Dividend Stocks to Avoid in 2014

These stocks have run their course...dump them now

      View All  

AT&T

ATTLogo 150x150 3 Dividend Stocks to Avoid in 2014The mustard is already coming off this hot dog. Shares of AT&T (T) have collapsed after peaking at a price of $39 per share this past spring. Along the way down, however, the stock found a bid from investors attracted to the 5% dividend. Don’t be one of those investors. Analysts expect the company to grow profits by 8% in 2014. At current prices, shares trade for 13 times 2014 estimated earnings.

I don’t think it’s ever a good idea to pay a double-digit multiple of earnings when a company is growing profits at a single-digit clip. It is hard to see where the catalyst for future growth will be for AT&T. The smartphone phenomenon has essentially run its course.

AT&T will be lucky in my opinion to grow profits by 8% next year. I would definitely avoid this stock in 2014.


Article printed from InvestorPlace Media, http://investorplace.com/2013/12/3-dividend-stocks-avoid-clf-t-symc/.

©2014 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.