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3 Dividend Stocks to Avoid in 2014

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

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Cliff’s Natural Resources

cliffs natural resourcesCliffs Natural Resources (CLF) saw a decline in share value last year. The selling will likely continue in 2014.

From an energy perspective, the death of coal may have finally arrived. It’s a dirty, nasty and disgusting fuel source. The boom in natural gas as a reliable alternative has precipitated the fall. I’d be concerned about that 2.5% dividend. That’s really the only reason to own this stock and that number does not compensate for the collapse in profits here. Analysts expect the company to earn $3.01 per share this year. Next year that number is sliced by a third to $2.01 per share. I wouldn’t pay a double-digit multiple for this profit stream. It will likely get worse before it gets better. Dividend hunters can find yield elsewhere and in 2014 there will be more options to choose from.

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