Five Dangerous Dividend Stocks You Should Stay Far Away From…
This article is all about stocks you should avoid.
Trust me when I say the world is filled with bad investments.
Some are obvious… like when your brother in law wants to start an alpaca breeding farm. Some not so much.
With Dividend stocks it’s often hard to see which businesses are rotten from the core… because they often still make money and pay a dividend.
This creates a trap for investors… they see a company with great numbers… and the market starts to realize the company is rotten… so the share price falls, making the rotten dividend company look like a great value.
It sucks in investors who don’t do extensive due diligence… or just overlook the rotten core of a business.
What’s a rotten business look like?
Just take a look at the tobacco Companies…
Vector Group Ltd. (VGR)
Altria Group, Inc. (MO)
British American Tobacco p.l.c. (BTI)
Reynolds American Inc. (RAI)
Philip Morris International, Inc. (PM)
Is the cigarette business rotten?
You bet it is.
Not because the business has changed… but because society is changing. 100 years ago, Doctors would subscribe cigarettes for patients.
Now there are bans on cigarette advertising…
But that’s not all. There are active Anti-smoking campaigns gaining traction. Smoking is banned in public places… and in buildings. This industry is under assault…
Then to add fuel to the fire, governments are taxing the crap out of cigarettes, making them prohibitively expensive.
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This type of backlash is spreading around the world… even Europe has limitations on where you can smoke… in a few years – the Anti-Tobacco movement will have spread globally and these businesses will suffer.
Does it happen overnight?
Nope.
It might take years… but over time, the business will be slowly destroyed by outside pressures… and If you buy these stocks for the long term you’re going to lose money.
Remember, we’re not traders… we’re looking for dividend stocks to buy and hold for decades. In a few decades, tobacco companies won’t be around… so save your money and invest it elsewhere.
If you download my free report “The Ultimate Guide to Dividend Investing.” I’ll share with you 13 stocks to buy.
I’ll give you some basics around the rules to dividend investing… plus thirteen other dividend stocks you should consider for your portfolio.
I’ll rush the report to you right away… just sign up today!