Image Source: Pixabay

The ultimate goal of dividend growth investing is to realize rising income over time. For this reason, we recommend dividend growth investors focus on stocks with long histories of increasing dividends each year.

However, there are times when income investors should consider selling a stock. Namely, if a company cuts its dividend, or goes a long period of time without raising its dividend. Reduced or stagnated dividends can be a red flag that a company’s underlying earnings are not rising.

The following 3 dividend stocks have displayed no dividend growth and/or have cut their dividends, making them potential sells for income investors.

BCE Inc. (BCE)

BCE Inc. is a telecommunications and media company that provides communications services in the following business units: Bell Communication and Technology Services (“CTS”), which includes Wireless and Wireline, and Bell Media.

BCE addresses residential customers as well as small- and medium-sized businesses and large enterprise customers. BCE was founded in 1970, is headquartered in Verdun, Canada. Shares are listed on the NYSE and on the TSX in Toronto.

In 2024, operating revenue was down 1.1% from the previous year. Adjusted EPS declined 5.3%. In the 2025 first quarter, revenue declined another 1.3% to $5.93 billion. To help restore earnings growth, the company announced a $1 billion cost savings plan by 2028, focusing on fiber and digital media growth.

However, in May, BCE cut its dividend by 56%. Prior to the dividend cut, BCE was carrying an annual dividend payout ratio well above 100%, a clear red flag. In addition, the company had an elevated level of debt. Its net debt to adjusted EBITDA ratio was 3.8x at the end of Q4 2024.

For these reasons, the dividend cut was likely warranted, to preserve cash for strategic investments.

B&G Foods (BGS)

B&G Foods, Inc. is a consumer staples company with operations in the U.S., Canada, and Puerto Rico. Some of the company’s well-known brands include Green Giant, Cream of Wheat, Cary’s, Ortega, Mrs. Dash, and Maple Grove Farms, with 50+ brands in total.

Its product portfolio focuses on shelf-stable, frozen and snack brands. On December 1st, 2020, B&G Foods completed the acquisition of Crisco.

B&G Foods reported first-quarter financial results on May 7th. For the quarter, the company recorded net sales of $425 million, which missed analyst estimates by $10.4 million. Adjusted earnings-per-share of $0.04 missed estimates, which called for $0.08 per share.

The company revised full-year guidance, now expecting 2025 revenue of $1.86 billion to $1.91 billion.

The average analyst estimate for B&G Foods is to generate earnings-per-share of $0.55 per share in 2025. However, the company’s annual dividend payout is $0.76 per share, making for an unsustainable payout. It is highly possible B&G Foods will cut its dividend at some point in the future.

Xerox Corporation (XRX)

Xerox Corporation traces its lineage back to 1906 when The Haloid Photographic Company began manufacturing photographic paper and equipment. Through a series of mergers and spinoffs, the Xerox we know today was formed.

Xerox spun off its business processing unit in 2017 (now called Conduent) and now focuses on design, development, and sales of document management systems.

In February, the company cut its quarterly dividend by 50%.

Xerox reported first quarter financial results on May 1st. Quarterly revenue of $1.46 billion missed estimates by $60 million. Adjusted earnings-per-share of -$0.06 per share missed analyst estimates by $0.03 per share.

With continued operating losses, the company’s ability to pay its dividend is compromised. Xerox has had a difficult time growing revenue and profits and we do not see that changing moving forward. After another quarter of weak results and guidance, we’re more concerned about the company’s outlook.

More By This Author:

10 High Yield Dividend Stocks Without Dividend Growth To Consider Selling
10 Fast Growing Stocks For Serious Dividend Compounding
The Top 10 Graham Number Dividend Champions