{"id":72272,"date":"2015-05-11T05:02:27","date_gmt":"2015-05-11T09:02:27","guid":{"rendered":"http:\/\/countingpips.com\/?p=72272"},"modified":"2015-05-11T07:10:00","modified_gmt":"2015-05-11T11:10:00","slug":"4-dividend-aristocrats-could-be-in-serious-trouble","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2015\/05\/4-dividend-aristocrats-could-be-in-serious-trouble\/","title":{"rendered":"4 Dividend Aristocrats Could Be in Serious Trouble"},"content":{"rendered":"
May 11, 2015<\/div>
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By WallStreetDaily.com<\/u><\/a> \"These<\/p>\n

By Chris Worthington<\/a>, Editor-in-Chief of Income<\/em><\/p>\n

As an income investor, you\u2019ve probably heard of the illustrious \u201cDividend Aristocrats<\/a>.\u201d<\/p>\n

These 54 companies have continuously raised their dividends over the last 25 years or more.<\/p>\n

And because dividend growth \u2013 not just yield \u2013 is critical for achieving outperformance, the Aristocrats are popular investments for income seekers.<\/p>\n

But some of these regal companies may be hiding behind their spotless reputation.<\/p>

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Just a little digging reveals that several of these lauded stocks are teetering on the edge of losing their Aristocratic rank\u2026<\/p>\n

Indeed, just because a stock has raised its dividend for a quarter of a century doesn\u2019t mean it\u2019ll continue to do so forever.<\/p>\n

Thus, it\u2019s important to look at the financials of the 54 Aristocrats and identify which dividends may be in danger of a freeze\u2026 or even a cut.<\/p>\n

First, let\u2019s take a look at the dividend payout ratio. Anything above 80% should be a red flag for investors. Yet, four of the Dividend Aristocrats (excluding HCP, Inc.<\/strong> (HCP<\/a>), which, as a real estate investment trust, is held to a different standard) are above this important threshold:<\/p>\n

\"Dividends<\/p>\n

The chart above shows both the 2014 dividend payout ratio and the trailing 12-month payout ratio. The latter gives an idea of whether the company is moving toward a more or less sustainable dividend, as its most recent quarter is included.<\/p>\n

Now, let\u2019s take a closer look at these four companies to see whether their dividends are truly in danger.<\/p>\n