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Dividend
Death
List
Here's a list of high-dividend
stocks that we think are risky business and due for a fall.
We use a proprietary risk scoring system
to pick stocks for the list. We developed the scoring system to help us
select stocks for our various portfolios. It evaluates a stock's
mid-term (one to six months) total return outlook.
Our scoring system considers a variety
of fundamental, sentiment, and technical factors that we've found useful
for evaluating dividend stock candidates. As you might imagine, the
Death List stocks are the highest scoring, in terms of risk. It
identifies stocks that are likely to cut their dividends and/or suffer
share price drops, within the next six months.
Also, to keep the list down to
reasonable size, we are only listing stocks trading for at least $5 per
share, and paying at least a 3% yield.
Keep in mind that in the stock market,
nothing works all of the time. So, while we think that these stocks are
riskier than most, not all will drop in price.
The table shows our calculated Risk Score for each stock. We consider
scores above 2 as risky, and the higher the score, the higher the risk.
Risk formula ver. 2 (3/2/10)
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