3 Dividend Stocks That Investors Should Avoid

分组1 - The 69 stocks classified as Dividend Aristocrats® have consistently outperformed the broader markets, with an average annual return of 1.59% higher than the S&P 500 since 2000 [1][2] - An initial investment of $10,000 in Dividend Aristocrats® would have grown to $84,700 compared to $58,600 in the S&P 500, highlighting the significant impact of dividend growth on total returns [2] - Companies that can maintain and increase dividends over decades tend to be resilient and well-managed, although a fall from this status can lead to significant losses for investors [3][4] 分组2 - Walgreens Boots Alliance was recently removed from the Dividend Aristocrats® list after suspending its dividend, resulting in a 15% drop in share price upon announcement [4] - Some Dividend Aristocrats® may provide inadequate dividend increases that do not keep pace with inflation, leading to potential investor losses [5] - Hormel Foods has not announced a dividend increase for 2025 and its previous increase of 2.5% in 2024 was below the 2.9% inflation rate, indicating a trend of underperformance relative to inflation [6][7] - Hormel's dividend growth has lagged behind inflation since 2021, with an 18% increase in dividends compared to a 24% rise in the Consumer Price Index [7] - The company's high payout ratio of 84% limits its ability to increase dividends in the future, especially given its recent earnings growth of only 4% [8]