Western Union Yields 15.3%. Here Are 4 More Dividend Stocks Flashing Warning Signs
A 15% yield can feel like a windfall right up until the board votes to end it. These five dividend stocks are flashing the same warning signs that have preceded painful cuts before.
A reported yield can look like a gift right up until the board cuts it. Western Union (NYSE:WU | WU Price Prediction) now yields 15.3%, and much of that comes from a share price down 24.96% this year. A high yield matters only if the company can keep paying it, and the five names below show strain on that front.
Quick test: a dividend looks shaky if the proper earnings measure doesn’t cover it, when free cash flow falls short of it, or when rising debt is effectively paying for it. (We listed all seven red flags in a free dividend trap guide.)
LyondellBasell (LYB): Halved Payout Still Depends on a Chemicals Recovery
LyondellBasell Industries (NYSE:LYB) yields 5.14%, and the stock is up 59.84% year to date. That makes this the only yield on the list driven by the payout itself during a share-price rally.
The warning is the cut LyondellBasell has already made. The quarterly dividend dropped from $1.37 in 2025 to $0.69 in 2026. Third-quarter adjusted EPS of $2.54 missed the $2.59 estimate. O&P Americas EBITDA fell to $641M from $1.27B quarter over quarter as petrochemical pricing normalized. Management expects European O&P operating rates of just 60% in Q4.
Coverage is better than at the other four. Q3 operating cash flow was $1.7B against $303M of capex, and the forward dividend uses about 68% of trailing EPS of $4.08. Progress on the Cash Improvement Plan would ease concerns, while another quarter of contracting O&P margins would confirm them.
Medical Properties Trust (MPW): Thin FFO Cushion and Tenants Missing Rent
Medical Properties Trust (NYSE:MPW) pays $0.09 a quarter. The stock was $2.76 at its Q3 filing. It was down from $4.70 in Q2, so the yield grew mainly because the price fell.
For a REIT, the right coverage test is funds from operations. Q3 adjusted normalized FFO was $0.11 per share, so the dividend takes about 82% of it. Normalized FFO slid to $63.82M from $77.21M year over year. GAAP net income of $202.08M was inflated by roughly $158M of asset-sale profits. Tenant HSA failed to pay September rent. Leverage is 8.7x net debt to EBITDAre, and the trust refinanced at a punitive 9.25%.
Things that would help: ~$680M of asset-sale proceeds going to debt and 2027 cash rents exceeding $1.0B. Signs the dividend is in more trouble: more missed rent, or problems with the revolver maturing Dec 30, 2026.
Stellantis (STLA): Yield Screens Still Show a Payout With No 2026 Payment
Stellantis (NYSE:STLA) last paid an annual dividend of 0.77, with an ex-date of April 23, 2025. With shares down 57.94% this year, any screen that still uses that payout shows a huge yield. No dividend was declared in the reported 2026 quarters.
Resuming the payout looks hard for now. Operating cash flow for the first half was negative €2.89B, and total debt rose to €55.999B from €45.947B. S&P rates the company BBB- with a negative outlook. Management doesn’t expect positive industrial free cash flow until 2027, and the March hybrid notes carry coupons as high as 8.25%.
Shares rallied after bullish cost-cut and cash-flow comments. Industrial free cash flow turning positive would ease concerns. More credit downgrades would confirm it.
FMC (FMC): Negative Equity and a Tight Covenant
FMC (NYSE:FMC) yields 5.16% after a 93.14% five-year drop. The quarterly dividend has already been cut from $0.58 to $0.08.
Even the smaller payout isn’t covered. Q3 adjusted EPS was -$4.41 against a $0.08 estimate, and free cash flow was negative $18 million. Full-year free cash flow guidance is negative $350 million to negative $150 million. Shareholders’ equity turned negative at -$19.4M. Interest coverage is 2.3 times, close to the 2.0 times covenant minimum. On the call, management stressed liquidity and never addressed the dividend.
Closing the India sale and getting to year-end net debt of roughly $3.1 billion would ease the pressure. Covenant strain would confirm it. Total debt to covenant EBITDA would have been 6.1 times, against a 6.75 times limit that returns at year-end.
Western Union (WU): Board Holds the Dividend While Profits Slide
Western Union has paid $0.235 per share per quarter since 2021. Measured against trailing EPS of $1.23, the payout ratio is about 76%, which looks manageable.
Cash flow tells a tighter story. Year-to-date operating cash flow of $214 million minus $88 million of capex leaves about $126 million. Half a year of dividends costs roughly $147 million. Adjusted EPS guidance was cut to $1.25 to $1.35 from $1.75–$1.85. U.S. retail transactions are falling at a mid-teens rate, and buybacks are suspended.
The CEO said the company has “sufficient financial capacity to continue and maintain that dividend.” When a payout holds through this much stress, treat that as a warning sign. Reaching the $200 million run-rate savings target would ease the concern. Another guidance cut would confirm it.
Check Coverage Before Trusting the Yield
When a dividend gets cut, the stock usually falls with it, so income investors lose twice. Yield by itself isn’t a reason to buy. Before relying on one, check coverage using the right measure for the business: free cash flow after capex and the direction of debt.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
