Dividends are an investor’s best friend. Not only do the payouts provide many investors with some much-needed income, but they also keep the management teams of companies focused on efficiency and profitability. Although some dividends have a lot of upside potential, not all dividends are so blessed or even guaranteed to last at all, and one of the first signs of potential trouble is a worrisome payout ratio.
In this article, we’ll examine five companies with somewhat high payout ratios that investors should look at with caution in terms of their sustainability. Those companies are Mattel, Inc. (NASDAQ:MAT), Telefonica S.A. (ADR) (NYSE:TEF), Royal Dutch Shell plc (ADR)(NYSE:RDS.A), Staples, Inc. (NASDAQ:SPLS), and Seagate Technology PLC (NASDAQ:STX).
Source: Insider Monkey