7 F-Rated Dividend Stocks to Dump ASAP

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  • There’s no reason for bad dividend stocks to drag your portfolio down. If you’re holding onto one of these names, it’s time to let them go.
  • Intel (INTC): Intel turned a profit in the second quarter, but there are some concerning issues and a diminished dividend.
  • Marvell Technology (MRVL): MRVL only has a quarterly dividend yield of 6 cents per share, which is less than 0.5%.
  • Hilton Worldwide Holdings (HLT): Growth in the U.S. is lagging behind the rest of the world.
  • Wynn Resorts (WYNN): Macau profits may already be baked into this stock, which has a dividend that’s only a shadow of the pre-Covid payout.
  • Manchester United (MANU): Owning a piece of a sports team may be cool, but not if you’re looking for a dividend payout.
  • Spirit AeroSystems (SPR): If it weren’t for its parent company Boeing, Spirit AeroSystems would be in even worse shape.
  • Big Lots (BIG): Big Lots responded by suspending its dividend when times got tough.
dividend stocks - 7 F-Rated Dividend Stocks to Dump ASAP

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As much as I love good dividend stocks, I have very little patience for F-rated dividend stocks that do nothing but drag your portfolio down.

As an investor, you deserve better!

A great dividend stock can make all the difference in your portfolio. By reinvesting dividends, growth investors can increase their positions and investing power even quicker. I’m a big advocate of the power of compound interest and reinvesting your dividends amplifies those efforts.

For income investors, dividend stocks also are ideal. Holding a selection of quality dividend stocks gives you the opportunity to collect a reliable monthly or quarterly payout that supplements your retirement. That can be really important when inflation is on the rise.

F-rated dividend stocks don’t do any of that. Those stocks get the worst ratings from my Dividend Grader tool, which I use to find the best and worst dividend stocks on the market.

Holding F-rated dividend stocks is a recipe for disaster. Don’t let it happen to you.

Intel (INTC)

Close up of Intel sign at their San Jose campus in Silicon Valley
Source: Sundry Photography / Shutterstock.com

Intel (NASDAQ:INTC) is an up-and-down stock that had a respectable second quarter, returning to profitability after two consecutive quarters of losses. Those weren’t just normal-sized losses. The Q1 debacle was the biggest loss in Intel’s 55-year history.

But I’m not ready to say Intel is on the way back. INTC stock gets the bottom rating from the Dividend Grader, coming in at an “F” grade.

It’s concerning that Intel’s still showing a 15% drop in revenue on a year-over-year basis. That its margins are down. Or that the company’s Data Center and artificial intelligence revenue dropped 15%. Intel acknowledges it expects additional “softness” in the data center business and stiff competition for AI.

Neither of those bodes well for INTC stock.

And don’t forget that Intel cut its dividend by 66% in February, making this dividend stock much less appealing even when the stock is on the rise. The current yield is an uninspiring 1.4%.

Marvell Technology (MRVL)

image of the marvell (MRVL) technologies office campus
Source: Michael Vi / Shutterstock.com

Marvell Technology (NASDAQ:MRLV) designs and manufactures semiconductors for carrier, enterprise, data center and automotive platforms. Its chips can be used in cloud applications or on-site.

Marvell bulls will point to the company’s first-quarter earnings results, which saw revenue of $1.32 billion and EPS of 31 cents, both powered by investor excitement about artificial intelligence.

And while MRVL stock went up 32% in that report in late May, what has it done for us lately?

Not much. Marvell is down 8% since that earnings report, underperforming technology and semiconductor exchange-traded funds by a significant margin.

And if you’re looking for a strong dividend, look elsewhere. MRVL only has a quarterly dividend yield of 6 cents per share, less than 0.5%.

You can do much better elsewhere. MRVL stock has an “F” rating in the Dividend Grader.

Hilton Worldwide Holdings (HLT)

the sign in front of a Hilton (HLT) hotel
Source: josefkubes / Shutterstock.com

Hilton Worldwide Holdings (NYSE:HLT) is a worldwide hospitality company best known for its hotels.

Its brands include Hilton, Canopy, Waldorf Astoria, Homewood Suites, Doubletree and Hampton.

Overall, it maintains 22 brands with nearly 7,300 properties. Hilton controls more than 1.1 million hotel rooms in 123 countries.

The company recorded a top- and bottom-line beat in its Q2 report, posting $2.66 billion in revenue and $1.63 per share earnings. System-wide, it had a 71.3% occupancy rate in the quarter, up 7% from a year ago.

But interestingly, the U.S. growth lagged, coming in at 3.9%. European growth and Americas growth outside the U.S. was more than 9%, and Asia Pacific growth was up by 22%.

HLT stock is up 22% this year, and maybe perhaps it’s a decent long-term holding. But as a dividend stock, HLT is downright stingy, with a yield of only 0.4%.

That’s why this stock gets an “F” rating in the Dividend Grader, despite the company’s recent financial success.

Wynn Resorts (WYNN)

the Wynn resort in Las Vegas
Source: Wangkun Jia / Shutterstock.com

Casino stocks like Wynn Resorts (NASDAQ:WYNN) were hurt badly by the Covid-19 pandemic and assorted shutdowns. The casino business in Macau still isn’t back all the way, and in-game wagering and other sports betting initiatives haven’t brought in the money that many hoped for in casino stocks.

The stock has nearly doubled since its 2020 lows, but recent performance hasn’t been as good. The stock dropped 10% over the last three months amid concerns that investors have already baked Macau profits into the stock price.

Second-quarter earnings of $1.6 billion were up from $908.8 million a year ago as the Macau post-Covid recovery accelerated. Income of $105.2 million was an improvement from last year’s loss of $130.1 million.

While Wynn’s business may be coming back, the dividend surely isn’t. Before Covid-19, Wynn paid a quarterly dividend of $1 per share. But it suspended its dividend during the pandemic and only came back in May at a paltry 25 cents per share or less than 1% yield.

Hopefully, Wynn’s dividend will return at some point, and if it doesn’t, I’m sure the stock’s Dividend Grader rating will improve. But for now, it’s an “F.”

Manchester United (MANU)

Wide shot photo of Manchester United (MANU) stadium seating at sunset, red seats with white text reading "Manchester United"
Source: shutterstock.com/amirraizat

Football club Manchester United (NYSE:MANU) trades on the New York Stock Exchange, so anyone can get a piece of the famed European club where football greats Ryan Giggs, George Best and Cristiano Ronaldo graced the pitch.

That may be fun to do. But is it a good investment? The answer is a clear “no” if you’re looking for dividends.

Earnings for the fiscal third quarter ending March 31 included 170 million pounds ($216.2 million), up from 152.8 pounds in the same quarter a year ago. The club reported an operating loss of 4.7 million pounds, an improvement from a loss of 21.8 million pounds a year ago.

But unfortunately, the dividend is non-existent. MANU used to be a consistent dividend stock, issuing a 9-cent-per-share payout two times a year. But the last payout was in June 2022, and nothing since then.

Can you hear the boo-birds? MANU gets an “F” rating in the Dividend Grader.

Spirit AeroSystems (SPR)

The Spirit AeroSystems (SPR) website displayed on a smartphone screen.
Source: madamF / Shutterstock.com

Spirit AeroSystems (NYSE:SPR) manufactures aerostructures for commercial airlines, business and regional jets, and defense platforms. It is a wholly owned subsidiary of Boeing (NYSE:BA).

Its products include everything from fuselages to wings and wing components, pylons and nacelles. For business and regional jets, Spirit also has an aftermarket business.

However, it’s not a profitable business, even with the partnership with Boeing. Revenue in the second quarter was $1.4 billion, up 8% from a year ago. But the company reported an adjusted loss of $1.46 per share, and an operating loss of $120 million, which was greater than the loss of $104.7 million a year ago.

Spirit also paid a meager dividend of 1 cent per share until September 2022 but hasn’t paid one since. The stock is down 23% this year and gets an “F”  rating in the Dividend Grader.

Big Lots (BIG)

Photo of a Big Lots (BIG) store shot from the parking lot with a shopping cart in the foreground and clear blue sky in the background. BIG stock
Source: Jonathan Weiss / Shutterstock.com

Big Lots (NYSE:BIG) is an Ohio-based discount retailer selling toys, clothing, household items, furniture and groceries. It has more than 1,400 locations.

But it’s been a struggle for Big Lots in 2023. While the company should be doing well in an inflationary environment. People looking to stretch their dollars typically shop at discount retailers.

Instead, Big Lots suffered from greater costs, higher interest rates and supply chain issues. Customers also saw lower tax refunds from the 2022 tax year, which affected their spending in Big Lots stores.

Unfortunately for dividend investors, Big Lots responded to these pressures by suspending its 30-cent-per-share dividend.

Big Lots is a big disappointment if you’re looking for yield. It gets an “F” rating in the Dividend Grader.

On the date of publication, Louis Navellier had a long position in BA. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.

The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.


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