Can you lose money on dividend stocks?
Good Question!
Yes, dividend stocks can lose money. One great example is Enron. Enron used to pay dividends and went bankrupt. Investors that think they can count on analyst stars or all information in annual reports or that a dividend company can’t lose money need to realize it does not work that way all the time.
Company Bankruptcy filing Last paid dividend* Dividends paid** ($mil)
Comdisco July '01 Feb. '01 $15
Enron Dec. '01 Sept. '01 372
Federal-Mogul Oct. '01 Nov. '00 7
Polaroid Oct. '01 Nov. '00 153***
USG Corp. June '01 Feb. '01 20
Warnaco June '01 Sept. '00 19
You can also even be sued by a company that issued a dividend to you as a shareholder. Owens Corning , which went Chapter 11 in 2000 amid towering asbestos claims, filed a lawsuit against major shareholders, aiming to force them to relinquish dividends paid from 1996 to 2000. The last quarterly dividend it sent out before the Chapter 11 filing paid 7.5 cents a share for a nice 3.7% annual yield.
So, no, dividend stocks are not protected from losing money. Any investment can lose money.
I hope that helps and good luck with your investing!
Benjamin Z Miller
www.benjaminzmiller.com
-
4:34
Tyking
2 years agoCan a stock stop paying dividends
19 -
15:43
Dividendology
1 year ago5 Dividend Growth Stocks that I Bought During the Dip!
-
9:24
Dividendology
1 year agoI Bought These 10 Dividend Stocks during the Market Downturn!
1 -
12:38
Veenbean
8 months agoDividend Stocks
8 -
11:11
Dividendology
1 year agoHow to Build a Successful Dividend Portfolio in 2023!
7 -
3:06
TheInvestingCounsel
3 months agoThe Ultimate Guide to Dividend Stock Investing
321 -
0:58
markplymale
1 year ago3 Dividend Stocks to Buy in 2023 📈
5 -
8:59
DividendBullOfficial
3 months agoIs Dividend Investing Dying?
1 -
13:15
CouchInvestor
1 year ago4 Top Dividend Stocks to Buy in May and Put Away
-
10:16
Max Maher
2 years ago5 Monthly Dividend Stocks That Will Pay Your Bills
33