A Looming Dividend Cut

As super-low interest rates drive more income-seeking savers to stocks with hefty dividends, the news last week that venerable J.C. Penney was cutting its 80-cent annual payout hit like a cold slap of reality.

Investors need to know that other high-yielding stocks could follow suit, likely leaving stockholders with both a smaller payout and a battered share price. And there are signs to watch for, experts say.