But as we also saw earlier, Lazard only froze and did not cut its regular quarterly
dividend during that recession.
Above all, for a true measure of stability, focus on stocks that have a high dividend yield that they have maintained or raised with
their dividends during a recession or stock - market downturn.
The drop in distributions reflected two factors: Some index members slashed
their dividends during the recession, and others - some with what appeared to be unsustainably high yields - were kicked out of the index after Zacks» stock - selection methodology flagged them as no longer meeting its criteria.
Not exact matches
Froze but did not cut
dividend for one year
during the Great
recession.
Between 2007 and 2009, approximately 34 % of American stocks that pay
dividends quarterly cut their payout at some point
during the
recession...
Kite went public on August 10, 2004 (over 13 years ago), and as evidenced by the snapshot below, the company grew rapidly and was forced to cut its
dividend during the Great
Recession, from $ 3.28 per share (in 2008) to $ 0.96 per share (in 2010).
In other words, even
during recessions or when the stock market goes down, they keep increasing their
dividends to shareholders.
I add a point in recognition that they increased their
dividend each year
during the real - estate
recession.
Between 2007 and 2009, approximately 34 % of American stocks that pay
dividends quarterly cut their payout at some point
during the
recession...
Also, when the share price of company xyz goes down by 40 %
during a
recession, their
dividend payout will not necessarily decrease by 40 %.
Currently there are 50 stocks that make the cut, all of which are high quality, have large moats that have allowed them to continue to prosper
during all points of the business cycle, even raising
dividends during times of
recession.
This is why Hormel was able to continue growing its
dividend not just
during the Great
Recession, but also throughout numerous other economic shocks over the past half century.
Like many stocks, CHW cut it
dividend during the depths of the Great
Recession 2009.
Therefore, even
during the
recession period, the investor would get their
dividend at specific intervals.
Even
during the depths of the last
recession, the company still managed to increase its
dividend.
Each one of these stocks has paid higher
dividends every year for at least 25 years, each is a high quality business, each has a large moat, and each has proven itself through multiple business cycles, not only maintaining the
dividend but even increasing them
during recessions.
Another one of the most important factors impacting
dividend safety is a company's performance
during the last
recession.
Dividend safety is also boosted by the company's strong occupancy rates, which even held up
during the last
recession.
From 1988 through 2006 SLM Corp. grew their
dividend at a compound annual rate of 22 % with only one annual reduction of the payout
during the 2001
recession.
They generally give a very good
dividend (about 4 - 6 %) and are a good asset
during the
recession as its very unlikely for their stock to feel too hard.
Froze but did not cut
dividend for one year
during the Great
recession.
Interestingly, Lazard did not cut its
dividend during the Great
Recession as so many banks did.
A company's performance
during the last
recession also impacts its
dividend safety.
We also see the price collapse and that the
dividends were cut
during the Great
Recession when earnings also went negative.
We also evaluate how a company performed
during the last
recession to assess the safety of its
dividend.
High
dividend yields are very supportive of stock prices
during recessions and turmoil.
Many of the top mutual companies have paid
dividends for over 100 years, paying
dividends to policyholders even
during the Great Depression, and more recently
during the Great
Recession.
The following graphic presentation reviews each of the three featured
Dividend Champions in this article
during a period just before and just after the Great
Recession.
The three blue chips increased their
dividends prior to,
during and after the Great
Recession.
He observed that
during the current earnings
recession, the few companies that have delivered earnings growth of more than 2 %, such as
dividend growth names, «represent an elite group.»
You can see they had a rocky time year
during the Great
Recession, freezing their
dividend for more than 2 years.
• Held its
dividend steady
during the Great
Recession, then began an increase streak that has reached 5 years.
Even
during the Great
Recession, when some companies froze or cut
dividends, Lockheed Martin's payout was a beacon lighting up an otherwise dark tunnel.
No one knows where the market will go from here, but the following companies all have strong
Dividend Safety Scores and performed well
during the last
recession.
This
recession - resistant status is further evidenced by the fact that Con Edison's sales only declined by 4 %
during the financial crisis, and management still had the resources to increase the ED stock
dividend.
For a true measure of stability, focus on those companies that have maintained or raised their
dividend yields
during a
recession or stock - market downturn.
Further, the company has a long
dividend history, even
during the Great Depression and Great
Recession.
So while EPR's
dividend is likely to remain safe
during a regular
recession, another financial crisis could lead to a
dividend cut if credit markets face a similar meltdown, especially if the movie theater industry finds itself on even shakier ground.
Those periodic special
dividends are feasible because of the firm's immaculate balance sheet, which has almost no debt, relatively high cash levels (relative to the size of the company and its acquisitions), and a high current ratio (i.e. the company's short - term assets cover its short - term liabilities by more than three-fold, thus protecting it from unexpected negative financial strains, such as
during recessions when demand from restaurants can lead to declining sales, earnings, and cash flow).
Using techniques identified in the article, a few income funds are highlighted (including the Buffalo High Yield Fund) that pay regular
dividends and preserved investors» capital
during the period before and through the Great
Recession.
Another factor impacting our
Dividend Safety Scores is how well a company performs
during recessions.
Although not guaranteed, most of these participating whole life policies, backed by mutual insurance companies, have paid
dividends for 150 years or more, even
during the great depression and great
recessions.
Remember, it was the Great
Recession, and I admire management for maintaining the
dividend during such economic turbulence.