Nike (NKE) is showing signs of a potential dividend cut with a 108% payout ratio and a historically high yield, following a significant stock price drop after poor earnings.
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4 Potential Dividend Cuts! 100%+ Dividend Payout Ratios Are a Major Red Flag for Each Dividend Stock
Dividend DiplomatsApr 15, 2026
The Dividend Diplomats discuss four stocks that may be at risk of dividend cuts due to high payout ratios. They analyze Flower Foods (FLO), Wendy's (WEN), Papa John's (PZZA), and Nike (NKE), highlighting their current dividend yields, payout ratios, and underlying business concerns as potential red flags for dividend sustainability.
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Tickers discussed in this post
Papa John's (PZZA) has an unsustainable 120% dividend payout ratio, putting its dividend at risk if a reported buyout deal does not go through.
Wendy's (WEN) faces potential dividend cuts with a 96.5% payout ratio and a tough year, showing signs of struggling to maintain its dividend amidst business challenges.
Flower Foods (FLO) is highlighted as a top candidate for a dividend cut due to a 118% payout ratio and a struggling food stock sector, making its 12% dividend yield unsustainable.