Source Post

3 Dividend Stocks with High Debt - Are They in Trouble?

Sep 19, 2026

The Dividend Diplomats discuss the impact of rising interest rates on companies with high debt, focusing on three dividend stocks. They analyze Home Depot (HD) and Clorox (CLX), examining their debt levels, payout ratios, and dividend growth prospects in the current economic environment. The creators express concern over HD's high debt-to-equity ratio and CLX's need for financial 'house cleaning.'

Linked Mentions

Tickers discussed in this post

SYYNeutralMedium ConvictionSignal-backedSecondary

Cisco (SYY) has a levered balance sheet but a manageable payout ratio, making it interesting but not a buy due to a lower yield/growth combination.

CLXNeutralMedium ConvictionSignal-backedPrimary

Clorox (CLX) is mentioned as needing financial 'house cleaning' due to its debt, implying a potentially concerning financial situation.

HDNeutralMedium ConvictionSignal-backedPrimary

Home Depot (HD) is down 12% YTD with a high debt-to-equity ratio of 3.77x, a 20x P/E, and a 62% payout ratio, making dividend growth difficult.

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