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Business · Stock markets · published 2026-10-14 · via 24/7 Wall St.

Five High-Yield Dividend Stocks Showing Warning Signs of Trouble

Image via 24/7 Wall St.
Image via 24/7 Wall St.

The article identifies five dividend stocks whose unusually high yields may signal financial strain. It points to Icahn Enterprises' roughly 30% yield alongside negative operating cash flow, UPS paying more in dividends than it generated in free cash flow, and Conagra cutting its payout while still posting negative free cash flow. It also says LyondellBasell's free cash flow covered only a small fraction of its distribution and warns investors to check cash flow and debt coverage for yields above 6%.

Expanded Detail

EXPANDED:

Icahn Enterprises’ roughly 30% yield rests on a $6.67 unit price and a $2.00 annualized distribution. Its payout has fallen from $2 quarterly in 2022–2023 to $1 in 2024 and $0.50 since 2025. In 2025, operating cash flow was negative $313 million while distributions totaled $288 million; second-quarter adjusted EBITDA attributable to IEP was a $134 million loss, and indicative NAV fell $765 million to about $2.60 billion. Default payment in new units dilutes holders.

UPS pays $6.56 annually, about a 6.9% yield, with a dividend never reduced but stock down 37.06% over five years. In 2025, $4.77 billion free cash flow trailed $5.398 billion dividends. For 2026, management guides $5.5 billion FCF against $5.4 billion dividends plus a $1.3 billion pension contribution. Conagra halved its payout yet had negative FCF; LyondellBasell’s $384 million FCF covered only a fraction of its $1.76 billion distribution.

Count? First paragraph: Icahn(1) Enterprises’(2) roughly(3) 30%(4) yield(5) rests(6) on(7) a(8) $6.67(9) unit(10) price(11) and(12) a(13) $2.00(14) annualized(15) distribution.(16) Its(17) payout(18) has(19) fallen(20) from(21) $2(22) quarterly(23) in(24) 2022–2023(25) to(26) $1(27) in(28) 2024(29) and(30) $0.50(31) since(32) 2025.(33) In(34) 2025,(35) operating(36) cash(37) flow(38) was(39) negative(40) $313(41) million(42) while(43) distributions(44) totaled(45) $288(46) million;(47) second-quarter(48) adjusted(49) EBITDA(50) attributable(51) to(52) IEP(53) was(54

Expanded detail and Context are AI-generated analysis; the linked article remains the authoritative source.
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This summary is Al-enhanced to contain extended analysis and broader social context. The original is {NAME); the linked article is the authoritative source. Original headline: “5 Dividend Stocks Where Sky-High Yields Could Be Hiding Serious Problems.” Browse more stories.