Alan Kohler says Dividends are under threat, citing examples in the Mining Services industry and by prominent listed companies David Jones and Tabcorp

Tom McKay

Alan Kohler says Dividends are under threat, citing examples in the Mining Services industry and by prominent listed companies David Jones and Tabcorp. But the big question is who could be next? Eureka Report published a report this week listing companies who could be regarded as yield traps - stocks that appear to have an attractive yield (usually after a stock price plunge) but where the dividend may soon be cut. By looking at factors such as forecast earnings and the strength of cash flows it's possible to see some companies that have a heightened risk. Kohler says. The report cites GUD Holdings, Worley Parsons, Metcash, Oroton and Blackmores as the stocks investors should be concerned about. Investors should be wary of yields that look too good to be true, they might just get cut back down to size. Watch the video: &feature=youtu.be


Comments

Please sign in to comment on this wire.