5 Dividend Stocks With Risky Payouts

When you evaluate dividend stocks, what do you typically look at? Chances are, dividend yield is a big part of the equation, though many investors also know to look at dividend growth. But what about dividend health?

Dividend stocks with risky, difficult-to-sustain payouts can be a drag on retirement portfolios. For one, companies that no longer have the financial means to grow the dividend likely are struggling to grow the business, which may be reflected in weak stock returns. Plus, if a dividend is slowly growing or stagnant, it loses purchasing power to inflation every year, essentially become worth less and less over time. The worst-case scenario - a dividend cut - could leave you without much-needed retirement income.

Dividend health clearly matters. But how do you measure it?

One emerging solution is the from exchange-traded fund provider Reality Shares. DIVCON - the first forward-looking dividend health methodology