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Take a look at any cases where the dividends on the stock are starting to drop in value. Review the stock and the business to see what is causing that change. There might be significant issues within the business like a loss of profits or legal actions that are causing the dividend value to change. Even the smallest decline in the dividends should be a cause for concern. With dividends being worth pennies a share, a single drop might be a big problem for your investment. Losing one cent on 10,000 shares of a stock would result in a loss of $100 on your dividends. Of course, that is just one example of what might happen.
