5 Dividend Stocks Flashing Warning Signs

2 hours ago 1

Danielle Liverance

Fri, July 10, 2026 astatine 10:18 AM CDT 6 min read

Quick Read

HUN already chopped its dividend 65% and inactive burns much currency than it earns; DOW's 50% chopped near the payout uncovered by antagonistic $1.4 cardinal successful escaped currency flow.
Chasing double-digit yields without checking EPS coverage, escaped currency travel aft capex, and leverage trends often ends with a chopped that drags the banal lower.
This lithium shaper surpassed a $1B backstage valuation, joining immoderate of America's astir almighty startups. Now you tin invest successful EnergyX alongside planetary giants similar General Motors, but lone done July 16. (sponsor)

Income investors chasing double-digit yields are often buying a informing motion successful disguise. A payout that looks generous contiguous tin vanish time if earnings, escaped currency flow, oregon the equilibrium expanse cannot enactment it. Several once-reliable dividend payers person already reset their payouts implicit the past year, and a fewer inactive look stretched adjacent aft the cut.

Two ample cardboard arrows, 1 reddish pointing down and left, and 1 greenish pointing up and right, are intertwined successful the foreground. In the blurry background, a acheronian surface displays a reddish and greenish enactment graph resembling a fiscal banal illustration with vertical bars beneath it.

A dividend becomes unsustainable erstwhile the institution cannot money it retired of recurring net and escaped currency travel without leaning connected indebtedness oregon plus sales. The cleanest cheque is EPS payout sum for mean corporates, backed up by escaped currency travel aft superior expenditures and a look astatine leverage trends. When those signals each constituent the incorrect way, the output is doing the talking, and the fundamentals are not.

Huntsman (HUN)

Huntsman (NYSE:HUN) already chopped the quarterly payout from $0.25 to $0.0875 successful Q4 2025, a astir 65% cut. Even astatine the reset $0.35 annualized rate, the communicative is not reassuring. Shares commercialized astatine $10.81, and the banal is down 48.71% implicit 5 years.

The specialty-chemicals concern has posted 8 consecutive quarters of antagonistic EPS done Q1 2026, including -$0.37 successful Q4 2025 and -$0.20 successful Q1 2026. Free currency travel was $116 cardinal successful 2025 against $146 cardinal successful dividend payouts, and Q1 2026 operating currency travel ran antagonistic $53 million. With losses persisting and nett indebtedness rising, adjacent the smaller dividend depends connected a chemicals betterment that has yet to arrive.

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