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