5 Stocks to Sell Now
Come out ahead (if you still can) and lose these laggards.

Our pans fall into two categories: companies with poor prospects and those with better prospects that trade at absurdly high prices. If you own any of these five stocks, consider dumping it, or at least paring back, especially if doing so won’t result in a taxable gain.
We start with three companies that pay generous dividends but appear to be struggling to keep up the disbursements. On the surface, profits seem to be rising at CenturyLink (CTL). But take out one-time items and the telecom company’s operating income and cash flow are down from a year ago, largely because customers are dropping their landline phones. Moreover, analysts expect virtually no profit growth over the next few years. What’s holding up the stock price is the fat $2.16-per-share annual dividend, which gives the stock a 6.4% yield. But CenturyLink cut the payout in 2013, and Brad Lamensdorf, co-manager of the Ranger Equity Bear ETF, expects it to do so again within the next year.
A juicy dividend is also propping up shares of Diebold (DBD). The maker of automated teller machines is paying at an annual rate of $1.15 per share, and it has a long history of yearly dividend hikes. But those increases have gotten smaller as Diebold’s finances have gotten tighter. Declining sales, a major restructuring and the recent departure of the company’s chief financial officer all raise red flags. Plus, declining cash flow puts the dividend in jeopardy. Finally, the stock, at 18 times projected earnings, isn’t cheap. (All data are through Nov. 1.)

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Dominion Resources (D) owns regulated electric utilities in Virginia and North Carolina, regulated natural gas utilities in Ohio and West Virginia, as well as various unregulated units. Analysts expect earnings to grow at a 7% annual clip over the next few years. That’s not terrible, but the stock sells for a lofty 18 times estimated year-ahead earnings. Also troubling is that Dominion has been borrowing money and issuing stock to support its $2.25-per-share annual dividend. The company can’t keep making those generous payments forever.
Turning to stocks in fantasyland, Tesla Motors (TSLA) undeniably makes great cars (see Putting Tesla to the Test). Founder Elon Musk is considered a visionary in the same mold as Henry Ford. But Tesla’s stock, which has zoomed by a factor of seven since going public three years ago, is priced for a perfect future. It sells for 135 times estimated earnings for the next four quarters. Any stumble will deliver a nasty shock to Tesla bulls.
Like Tesla, 3D Systems (DDD) is a hot stock in a hot industry. Shares of the maker of three-dimensional printers have nearly quadrupled over the past two-and-a-half years. Although 3D’s printers could revolutionize manufacturing, the company needs to drum up interest among consumers to support a stock that sells for 53 times projected year-ahead earnings. That hasn’t happened, Lamensdorf says. The printers hit Staples shelves last summer, but his checks indicate that few have sold, apparently because they’re expensive and because consumer applications aren’t obvious.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

-
The Retirement Bucket Rule: Your Guide to Fear-Free Spending
Forget market declines or rising inflation. With this strategy, you won’t have to worry about any of that during retirement.
-
How Big Will the Fed Rate Cut Be This Fall?
A dismal July jobs report has lifted expectations for fall rate cuts. But just how low could the fed funds rate be by year's end?
-
If You'd Put $1,000 Into Berkshire Hathaway Stock 20 Years Ago, Here's What You'd Have Today
Berkshire Hathaway is a long-time market beater, but the easy money in BRK.B has already been made.
-
If You'd Put $1,000 Into Procter & Gamble Stock 20 Years Ago, Here's What You'd Have Today
Procter & Gamble stock is a dependable dividend grower, but a disappointing long-term holding.
-
The Riskiest S&P 500 Stocks Right Now
Buyer beware: These are five of the riskiest stocks in the S&P 500 at the moment, based on one measure of volatility.
-
Stock Market Today: Wall Street Is Standing By
The waiting is the hardest part with trade war truce talks underway and inflation data on the way.
-
Stock Market Today: Stocks Stable as Inflation, Tariff Fears Ebb
Constructive trade war talks and improving consumer expectations are a healthy combination for financial markets.
-
Stock Market Today: Good Feelings and Solid Data Lift Stocks
Resilience and de-escalation defined another generally positive day for financial markets.
-
Stock Market Today: Tesla Drags on Stocks Amid Musk-Trump Feud
Sentiment has soured between President Trump and his once-loyal ally, Tesla CEO Elon Musk.
-
My Three-Day Rule for Investing: And If it Applies Now
Stock Market I've seen a lot in my career. Here's what I see now in the stock market.