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3 dividend stocks on the verge of correction

Do Kwik
4. 3. 2024
4 min read

Three major companies are facing challenges due to rapid changes in consumer preferences, digital transformation and an ever-changing economic environment. Losses in sales and lower earnings are raising concerns among investors about the sustainability of these companies' dividend yields. How are these companies adapting to new challenges and are they able to remain competitive?

With declining sales and expected profit declines, the challenges for these three companies are becoming more acute. Investors are watching to see how the companies respond to these new conditions, and if nothing changes, investors will likely have to change their dividend portfolio strategies.

Hasbro $HAS+11.9%

Hasbro is an international company specializing in games and toys, including digital entertainment products and collectible cards. The company has a long history of innovation and creativity in entertainment products and is known for its iconic brands such as Monopoly, Transformers and Magic: The Gathering.

HAS
$65.03 $6.89 +11.85%
Fair Price: $99.89
Lmcrhrhi: 7.84%
Undervalued
Overvalued
Dostupné pouze členům Bulios Black

However, Hasbro faces challenges due to changes in consumer preferences and increasing competition. Last year, the company saw its revenue decline to $5 billion, a 14% drop from 2022. For 2024, analysts expect a further decline in revenue to $4.5 billion and profit to $0.8 billion. With such revenue declines, the dividend, which currently stands at 5.7%, may also decline. Investors are concerned about uncertainty about the future market and Hasbro's ability to remain competitive in this area.

HAS
$65.03 $6.89 +11.85%

The company is trying to respond to new challenges by investing in innovation and new product development. However, with increasing competition and uncertainty about future sales, Hasbro must adapt to the new environment and seek strategies to maintain its market share and dividend yield in the coming years.

International Paper $IP+0.1%

International Paper is a world-renowned producer of packaging and pulp that serves as the raw material for a wide range of products including diapers, towels and tissue. The company has long specialized in innovative packaging solutions and is a major player in the industrial and consumer markets.

IP
$34.43 $0.02 +0.06%
Fair Price: $87.98
Aufmay: 50.81%
Undervalued
Overvalued
Dostupné pouze členům Bulios Black

However, International Paper is facing challenges as a result of digital transformation. For the year 2023, the company has seen its revenue decline to $19 billion, down 10% from 2022. For the year 2024, analysts expect the company to post earnings of $2.17 per share, a lower number than previous years. This drop in profit is due to the decreasing demand for the company's products. With such a development of the company, investors are concerned about the sustainability of the dividend yield, which currently stands at 5.3%.

IP
$34.43 $0.02 +0.06%

The company is actively trying to adapt to new challenges and is looking for strategies to improve its competitiveness. However, with uncertainty about future sales and earnings, the question remains whether it will be able to sustain its dividend yield in the coming years.

Boston Properties $BXP+0.0%

Boston Properties is a leading real estate investor focused on commercial real estate, particularly office space. Their portfolio includes properties in areas such as Boston, Los Angeles, New York, San Francisco, Seattle and Washington, DC. This company is known for its strategy of focusing on prime office properties and long-term investments in prestigious locations.

BXP
$62.94 $0.01 +0.02%
Fair Price: $28.88
Aylzow: 67.35%
Undervalued
Overvalued
Dostupné pouze členům Bulios Black

However, Boston Properties is facing challenges in an office environment that is undergoing unprecedented changes. A significant portion of their portfolio is located in prestigious markets where office prices are experiencing a downturn due to the rise of telecommuting and changing work patterns.

BXP
$62.94 $0.01 +0.02%

Over the past year, Boston Properties' revenues reached $3.2 billion, up 5% from the previous year. But the company's profit fell 77% to $190 million. For 2024, analysts expect revenue to fall to $2.2 billion. However, Boston Properties is actively trying to adapt to the new conditions. The company plans to invest USD 500 million in upgrading its office space and improving services for tenants.

Disclaimer: There is a lot of inspiration to be found on Bulios, but stock selection and portfolio construction is up to you, so always do a thorough analysis of your own.

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