Tom Reese/Paul Rubillo, Dividend.com
Lehman Brothers (LEH) may be getting ready to shop its much-heralded Neuberger Berman investment unit. The latest news reports show the company is considering offers from potential buyers.
The Neuberger Berman division has been a strong performer for Lehman. Unfortunately, the company finds itself at the mercy of the capital markets, where it may need to continue raising funds to offset the damage from its mortgage troubles. Management is trying to restore investor confidence, which it can best accomplish by reducing its higher-risk credit exposure.
The Bottom Line
Investors would be wise to avoid the shares during this period of extreme uncertainty. We are not sure if the company’s 4.52% dividend yield (based on last night’s closing stock price of $15.03) can be sustained much longer, given Lehman’s various financial troubles.
Lehman Brothers (LEH) is not a recommended dividend stock at this time, holding a Dividend.com rating of 2.7 out of 5 stars.
Tom Reese and Paul Rubillo are senior editors at Dividend.com. Visit Dividend.com for more dividend stock ratings, picks, news and analysis, including “Best Dividend Stocks,” as well as a detailed explanation of the Dividend.com ratings system.
