Bond yields have been under pressure for quite some time, which has put pressure on the many investors who rely on that regular fixed income to keep them afloat.
These investors had relied for a long time on the safety of bonds — little price volatility, the ability to choose from all types of bond investments according to one’s risk tolerance within a universe of low-risk choices, and regular interest payments. Being pushed out onto the risk curve means these investors have moved into dividends stocks.
That’s just fine, presuming the dividend stocks pay out reliably. However, even the most reliable dividend stocks still expose that investor to capital gain risk, something income investors usually didn’t fret much about. Here are three dividend stocks who I believe are at serious risk, which would vastly offset any kind of benefit from their dividends.