The S&P 500 now yields just 1.4% as companies that don’t pay dividends or have low yields make up a larger share of the broader market. Investors looking for passive income may be turning to stocks with higher yields and track records of dividend raises.
Walmart (NYSE: WMT), WM (NYSE: WM) (formerly known as Waste Management), and Sherwin-Williams (NYSE: SHW) consistently buy back shares and raise their dividends. But they now yield less than the S&P 500.
Here’s why these three dividend stocks are too successful for their own good, and why great companies can become poor sources of income over time.
Walmart is in growth mode
Walmart is hovering around an all-time high. After a successful 3-for-1 stock split, Walmart raised its dividend by 9%, marking the largest raise in over a decade and the 51st consecutive dividend raise. Still, Walmart only pays an…
