Not exact matches
For bonds this means issues that are not at risk
of defaulting on a payment; for stocks a
dividend is essential, and not one at risk
of a
cut, or one that fluctuates through
good times and bad.
Companies with records
of steadily increasing
dividends usually fared
better in the ratings than those in which
dividend growth has been erratic or where
dividend cuts or omissions have occurred.
Well, first
of all, we scoured our stock universe for firms that have
cut their
dividends in the past to uncover the major drivers behind the
dividend cut.
Remember to avoid serving grains or sugars to your children for breakfast in particular, and
cutting grains and sugar out
of other meals and snacks as
well will return healthy
dividends.
That high
dividend won't do you a lot
of good if it gets
cut tomorrow.
Not only are your
dividend payments reduced, but also stock values fall
well ahead
of the
dividend cut, and often fall even further immediately following the announcement.
Just as the smart
dividend investing approach uses research to predict deteriorating fundamentals ahead
of dividend cuts or suspensions, the same approach can uncover the
best stocks that show improving fundamentals for
dividend growth.
Typically, a
dividend stock that
cuts its
dividend first displays multiple warning signs
well ahead
of the actual reduction.
The adverse impact
of the Great Recession in 2008 dismisses thousands
of companies on earnings - per - share losses as
well as
dividend cuts / suspensions.
I agree that having some
dividend growth stocks in one's portfolio is a
good way to mitigate some
of the damage from
dividend cuts.
My observations have been: — I have experienced low volatility similar to a balanced series
of stock and bonds —
dividend income has grown between 6 - 8 % annually — not that much growth potential as most
of the individual stocks I own are mature companies — I sleep
well at night — none
of these companies
cut their distribution in 2008/2009 meltdown
The first is the highly conservative EPS and FCF payout ratios, which ensure that even in down years the
dividend is
well insulated and never at serious risk
of a
cut.
Yes, and enjoyment
of some degree
of research and keeping up on news is required, too — and you should enjoy this, it shouldn't feel like something you have to do... it's
good to know at least the basics, like mergers / acquisitions,
dividend increases /
cuts, how much debt they have, etc., new financial products on offer, etc..
Protecting your portfolio from falling stock prices and
dividend cuts today means finding companies with sustainable
dividends from strong cash flows and a
best -
of - breed brand.
P / E10 (actually, 100E10 / P) does
better than the initial
dividend yield because
of dividend cuts, especially before the 1950s.
You have a lot
of companies paying you this month, which is
good in case one
of them (like GE for me) decides to
cut its
dividend.
I believe that companies most at risk
of cutting their
dividends emit a number
of warning signs
well before a reduction is announced — sales and earnings are usually falling, the balance sheet is overleveraged, payout ratios are unsustainable, management hasn't shown to be overly committed to maintaining the
dividend, and the company needs to preserve cash.
On top
of March being a sub-average month, a couple
dividend cuts had a minor impact as
well: • DHY
cut its monthly
dividend 9.09 % from to 22 cents to 20 cents (or 38.50 to 35.00 this will hurt a bit) • HQL «
cut» its div to 40 cents.
Your «high yield is likely to
cut dividends» companies may pay off
better if you buy their debt instead
of their stock, whereas if you're buying stocks for
dividends, it's
better to aim for other companies that have sustainable albeit lower
dividend yields.
Funny fact, some readers
of mine had warmed me that this was going to happen and a very
good reader from BC suggested me to sell my Bell Aliant units because
of the announcement made regarding the
dividend cut.
If you broaden your horizons across the entire TSX and S&P 500 to include smaller companies, there are plenty
of high yielding stocks that may not be
good options, paying high
dividends simply because they've gone down in value and haven't yet
cut their
dividends (think junior oil companies paying out more than they're earning).
2017 saw 11
of my stocks
cutting their
dividend, which is * slightly *
better than 2016's 12 stocks
cutting their
dividends.
Also, my stocks pick methods are not 100 % perfect because some
of the stocks I purchased didn't perform
well as I expected and they
cut their
dividend.
It also needs to
cut its
dividend, reduce the number
of stores in mature markets and focus on getting its product mix and price levels right, as
well as reducing or writing off excess inventory that gets in the way
of new trends hitting its shelves, he said.