There has been a lot of concern about the security of financial stocks’ dividends lately. And I can see why …
According to the latest data from S&P, 16 companies have cut their dividends so far this year vs. 12 for the FIVE-YEAR period from 2003 through 2007. Even more telling is that fact that five of the 12 cuts over that period came in the fouth-quarter of 2007, as the credit crunch started happening.
Am I concerned about more cuts in the future? Of course. And there’s never any way to know with certainty that even the companies that are able to continue paying will choose to do so.
Still, based on comments from executives and balance sheet strength, I continue to believe that the very strongest companies in the space have the desire and means to maintain their payments.
Related posts:
- The Latest Dividend News I just got the latest dividend stats from S&P, and they’re grim. Six companies — basically all the financials that...
- ACAS Suspending Dividend Bad news: American Capital Strategies has also fallen victim to the credit crunch and has decided to suspend its...
- A Fresh Dividend Announcement from Cablevision To further highlight a point I’ve been hammering home — namely, that plenty of companies continue to pay out...
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The rich keep getting richer (energy stocks) and the poor poorer (financials), but someday it will turnaround. http://www.growyourfunds.com/2008/06/the_rich_get_richer_and_the_po.html
Hi, Ray. I wish I were on the Rockefellers’ payroll, but alas, I’m not. I’m simply citing the most recognized public source of information on individuals’ net worths — Forbes’ list. And they say Buffett is tops: http://www.forbes.com/lists/2008/10/billionaires08_Warren-Buffett_C0R3.html