High-Yield Stocks That Could Wreck Your Retirement: Pitney Bowes (PBI)
Dividend Yield: 5.9%
Pitney Bowes Inc (NYSE:PBI) will get your attention with its nearly 6% dividend yield. But don’t be seduced. PBI is a company with a very uncertain future.
Remember: This is a company whose primary business is selling postage meters and related supplies.
I’m not exaggerating when I say I might literally go a month without checking my mail. All of my utility bills are sent and paid electronically. If it weren’t for the occasional birthday invitation that gets sent to my kids, I would actually physically remove my mailbox from my property, as all it seems to do is accumulate junk mail and jury summons for the previous resident.
I give credit to Pitney Bowes for being a survivor. It’s a miracle that email, the internet and mobile apps haven’t put it out of business yet. But despite the company’s herculean efforts, PBI’s revenues have dropped every year since 2008. Annual revenues today are at 2002 levels.
I know, I know. The 5.8% yield is attractive. But this is a company that has already cut its dividend in recent years. Do not depend on this company to get you through retirement.