Investopedia: Veolia's Dividend Comes At A Cost

One of the lessons that experience will teach an investor is that almost nothing good comes cheap. In the case of income stocks, a high dividend yield may sound great, but it is often the case that an eye-popping dividend comes with a stressed company that may well struggle to maintain that dividend.


Veolia (NYSE:VE) is a good case in point. Management has realized that the Veolia that was, just wasn't a sustainable enterprise, and has launched a fairly extensive program of restructuring. While the dividend here is arguably sustainable, worries about growth and balance sheet restructuring may limit the capital gains potential.


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http://stocks.investopedia.com/stock-analysis/2012/Veolias-Dividend-Comes-At-A-Cost-VE-AWK-WTR-WM-RSG0305.aspx