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Explorer ○○

Coronavirus Dividend Cuts and Suspensions

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Frequent Contributor

Re: Coronavirus Dividend Cuts and Suspensions

           rpkrpi - where in the heck have you been? I never run across you. 

           Well companies have to cut back during bad times of indeterminate length to create a layer of reserve funds to stay in business. I sorta look at that as good management.

            Individuals will have to do the same. They generally don’t have a reserve fund and don’t have the ability to create one after the fact. That is an example of bad management. 

            The Feds are trying to save as many businesses and people as possible this time. Socialism at it’s best with no permanent programs hopefully. All will have the aftershocks and unintended consequences to deal with though.
             
             

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Explorer ○○

Re: Coronavirus Dividend Cuts and Suspensions

Steelpony - sorry I have been busy the past year. I think most people are hunkering down right now. I know I am. This recession will be a tough one. Steep and fast and slow to recover I think. -DP

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Re: Coronavirus Dividend Cuts and Suspensions

       rpkrpi - this may help your prospective if you have about a half hour to spare from birdwatching. 


https://wealthtrack.com/third-generation-investor-chris-davis-share-50-years-of-perspective-on-manag...

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Contributor ○○

Re: Coronavirus Dividend Cuts and Suspensions


@steelpony10 wrote:

       rpkrpi - this may help your prospective if you have about a half hour to spare from birdwatching. 


https://wealthtrack.com/third-generation-investor-chris-davis-share-50-years-of-perspective-on-manag...


Good Stuff! Thanks!



 

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Contributor ○○○

Re: Coronavirus Dividend Cuts and Suspensions

Yes, there aren't any surprises in that group. I suspect there will be many more added in the ensuing weeks. The likely candidates will be hotel/motel and leisure REITs, additional casual dining, airlines and gaming stocks. When revenues go to zero, or close to it, its tough to pay a dividend

BruceM

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Explorer ○○

Re: Coronavirus Dividend Cuts and Suspensions

Lol! Air seems cleaner with no one driving these days. Birds must love it.

Thanks for the link. Good perspective.

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Frequent Contributor

Re: Coronavirus Dividend Cuts and Suspensions

The S&P 500 Dividend Aristocrats lineup is getting two new members -- possibly the last for a while -- after a major merger and two spinoffs.

United Technologies , a member of the select group of S&P 500 companies that have increased their dividend for at least 25 straight years, is merging with Raytheon, which is not an Aristocrat, and will stay in under the merged entity known as Raytheon Technologies (RTN).

Two United Technologies units that are being spun out -- United Carrier Global (CARR) and Otis Worldwide (OTIS) -- are being added to the Aristocrats. That will bring the group's membership to 66.

However, they could be the last two firms admitted for some time given how many companies are suspending or cutting their payouts to conserve cash amid the coronavirus pandemic.

As of Wednesday morning, none of S&P Dividend Aristocrats had cut or suspended their dividends during the pandemic crisis, according to Howard Silverblatt, senior index analyst at S&P Dow Jones Indices.

Many companies will do well just to maintain their dividends, a move that would mean being kicked out of the group under current rules.

Silverblatt said that the eligibility rules have not been changed to reflect the coronavirus situation. S&P Dow Jones Indices reviews index constituents monthly.

<snip>

NOBL is a Dividend Aristocrat ETF and Yields about 3%.  Price is roughly -25% YTD. Reliable dividends on sale?

Thank you,

Holiday

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Explorer ○○

Re: Coronavirus Dividend Cuts and Suspensions

There are about 118 stocks on the list now. This includes some bog names such as BUD.

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Re: Coronavirus Dividend Cuts and Suspensions

Of the 66 dividend paying stocks I hold, I've now got 3 with dividend cuts: GPS, CBRL and SBRA. GPS is not a surprise and SBRA was financially borderline. Thankfully, I only get about .5% of portfolio income from these. CBRL is no surprise either. But like DRI, I'm sure the dividend will return once they reopen their casual dining.

Mortgage REITs...those reliably financial incompetents, have all...or most...suspended their dividends. You think investors would learn after the 2008/09 meltdown not to reach for yield from these things. This will be a painful lesson for many.

Also looks like a bunch of midstream MLP pipelines are curtailing distributions, likely due to reduced driving

Nervously watching HC REITs. I do hold several that provide about 16% of portfolio income.

Many regulated residental utilities remain on sales...although not nearly at the bargain basement prices of 3 weeks ago.

BruceM

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Explorer ○○

Re: Coronavirus Dividend Cuts and Suspensions

Add SLB to the Covid-19 cut list. Slashed its quarterly divy 75% from 0.75 to 0.125. Hindsight is a beautiful thing.

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Re: Coronavirus Dividend Cuts and Suspensions

Add SLB to the Covid-19 cut list

I looked at SLB as a potential reliable dividend payer a few years ago and was unimpressed by cash flow management, so haven't looked since. Like most energy logistical support companies, it weathered the 2008/09 recession fine with only a flat dividend. But then the last dividend increase was 1Q15, which remained flat at $.50 per quarter up to this cut.

BruceM

 

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Explorer ○

Re: Coronavirus Dividend Cuts and Suspensions

I think RTN changed to RTX

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Explorer ○○

Re: Coronavirus Dividend Cuts and Suspensions

Yes, at the end ofd March there were great deals. The market has bounced back from those lows. Some people say we will resist those lows. But I am not sure. I think the lows were exacerbated by margin calls.

 

 

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Explorer ○○

Re: Coronavirus Dividend Cuts and Suspensions

Yes, after UTX and RTN merged. The ticker became RTX. 

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Explorer ○○

Re: Coronavirus Dividend Cuts and Suspensions

The list was updated this past Wednesday. There are now 134 companies on the list. This includes two Dividend Champions $HP and $MDP.

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Re: Coronavirus Dividend Cuts and Suspensions

Just borrowed this from Hoya Capital. Current listing of REIT dividend cuts

So far its primarily hotel/motel, leisure and retail. Fortunately, I hold none of these, but I'm sure others do. And I'm sure other names will be added, as there are 11 hotel/motel shown here out of 18 listed at NAREIT.

BruceM

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Participant ○○

Re: Coronavirus Dividend Cuts and Suspensions

For first time since WW2 shell oil cut their dividend sixty percent. It may be time for all hands on deck! :)

Thank you Lord they did not cut our pension.

Copie

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Re: Coronavirus Dividend Cuts and Suspensions


@copie wrote:

For first time since WW2 shell oil cut their dividend sixty percent. It may be time for all hands on deck! :)

Thank you Lord they did not cut our pension.

Copie


Yes indeedie, Copie.  Is your pension an annuity, like mine, with Boeing?   If so, it's probably guarnteed!

With oil itself selling below it's all time low, inflation adjusted, twill be interesting to see how many other energy related stocks cut their diveys.  I'm interested in this list of divey aristrocrats, who have continuously increased their diveys each year for the last number of years shown  RDS wasn't among this list.

  # Years Up
ExxonMobil Corp.XOM37
NACCO IndustriesNC34
Chevron Corp.CVX33
Enbridge Inc.ENB24
Enterprise Products Partners LPEPD23
Magellan Midstream Partners LPMMP20
ONEOK Inc.OKE18
Holly Energy Partners LPHEP15
Texas Pacific Land TrustTPL15
Marathon Petroleum Corp.MPC10
Valero Energy Corp.VLO10
Delek Logistics Partners LPDKL8
MPLX LPMPLX8
Phillips 66PSX8
Phillips 66 Partners LPPSXP8
Western Midstream Partners LPWES8
CNX Midstream Partners LPCNXM6
Enviva Partners  LPEVA6
Hoegh LNG Partners LPHMLP6
PBF Logistics LPPBFX6
Shell Midstream Partners LPSHLX6
Sprague Resources LPSRLP6
USD Partners LPUSDP6
Green Plains Partners LPGPP5
Tallgrass Energy LPTGE5
ElLobo, de la casa de la toro caca grande
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Re: Coronavirus Dividend Cuts and Suspensions

I was just going to post about the RDS.B cut.  I'll feel this one.

BTW, we have two threads on this forum about divided cuts that are active.

Shell Thursday cut its dividend for the first time since 1945, reducing it by 66% to 16 cents a share after first-quarter profit fell by nearly half. The company warned that the pandemic's impact would be more severe in the second quarter.

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