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Frequent Contributor

Here are the dividend cutters by industry

I spent about an hour yesterday to find a comprehensive list of dividend cutters since January. Best I could find was a crowd sourced listing of dividend cuts at Reddit. But spent a bit more time this AM and was able to find a comprehensive list at DividendPower which I'll assume is comprehensive.

Here is the % of dividend cutters since Feb 2, by industry

div cuts thru 4-12-20.jpg

Here's the data sorted by the % dividend cut

divcuts 1.JPGdivcuts 2.JPGdivcuts 3.JPGdivcuts 4.JPGdivcuts 5.JPGdivcuts 6.JPGdivcut 7.JPG

A few things about this list.....

I found a few div errors, either because the cut dividend was cut again or due to a mistype. So I would only use this as a general guide on where most dividend cuts are falling. I also entered some of the industries in combination as 'leisure'.

'Energy' dividend cuts account for about 60% of all dividend cuts.

I didn't record them, but as I went through classifying each industry by pulling up the stock in Morningstar, I noticed the majority of these stocks are small....<$10/share.

It should also be noted that many of these dividend suspension announcements were 'temporary', meaning they may again be resumed as cash flow picks back up.

What is also very interesting is the industries that are NOT on this list. Not consumer staples, regulated utilities, industrial REITs and one residential REIT, Pharma or big industrials except BA. I guess in times like these, size matters.

Mixed in with these are stocks that I'd think the coronavirus and social distancing would have little impact, so these may be stocks that would have cut dividends even if coronavirus had not happened.

The web site says it will update this list daily. Anyone who'd like a copy of this Excel SS just send me an e-mail and I'll reply back with it attached.

BruceM

13 Replies
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Frequent Contributor

Re: Here are the dividend cutters by industry

That's a lot of work @BruceM. Thank you.

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Participant ○○○

Re: Here are the dividend cutters by industry

Yes, thanks very much @BruceM!

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Participant ○○

Re: Here are the dividend cutters by industry

Thanks, Bruce, for this very complete listing.

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Frequent Contributor

Re: Here are the dividend cutters by industry

Only 40 of SP 500 co have suspended/cut dividends which means that 90% of 408 SP 500 dividend payers are continuing or raising dividends.

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Frequent Contributor

Re: Here are the dividend cutters by industry

A couple of more tidbits of interesting dividend-cut info

Per NAREIT, there are 19 mortgage REITs. Per this list, there are 19 MREITs, so with 16 MREITs on the cut list, that just over 84% of all MREITs cut the dividend, and of these, 9 suspended the common dividend, or just under 1/2 of them. Whew! Might this be why these yields are perennially so high? Is the market telling us something about these things? Are we all listening?

Sticking with equity REITs, NAREIT and this list provide the following:

REIT SectorTotalDiv Cut% cut
    
Healthcare16531%
    
Lodging181372%
    
Retail331236%

 

I'm a bit surprised Retail doesn't have a higher participation rate for dividend cuts. Perhaps there are more to come.

It will be interesting to see how the higher quality dividend ETFs, such as VIG, fare for their 2020 dividend, along with other industry ETFs such as XLU as well as consumer staple ETFs such as XLP and VDC.

BruceM

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Frequent Contributor

Re: Here are the dividend cutters by industry

There were 866 divey aristrocrats with at least 5 years of ever increasing diveys, at the end of 2019.  Here is the list of the 71 that have cut, suspended, or eliminated their diveys as of the end of April:

Fallen aristrocrats so far in 2020 
American Assets Trust Inc.AAT
Alaska Air Group Inc.ALK
Aircastle LimitedAYR
Boeing CompanyBA
Bloomin' Brands Inc.BLMN
Bassett Furniture Industries Inc.BSET
Black Stone Minerals, L.P.BSM
Cracker Barrel Old CountryCBRL
CenterPoint EnergyCNP
CNX Midstream Partners LPCNXM
Columbia Sportswear Co.COLM
Community West BancsharesCWBC
Delta Air Lines Inc.DAL
Dunkin' Brands Group Inc.DNKN
Estee Lauder Companies Inc.EL
Cedar Fair LPFUN
Gannett Co., IncGCI
GasLog Partners LPGLOP
Group 1 Automotive Inc.GPI
Green Plains Partners LPGPP
Goodyear Tire & Rubber CompanyGT
Great Western Bancorp Inc.GWB
Holly Energy Partners LPHEP
Harley-Davidson Inc.HOG
Hexcel CorporationHXL
Ingersoll-Rand plcIR
Invesco LimitedIVZ
Kohl's Corp.KSS
Lear Corp.LEA
Manhattan Bridge Capital Inc.LOAN
Las Vegas Sands Corp.LVS
La-Z-Boy Inc.LZB
Macerich CompanyMAC
Marriott International Inc.MAR
Moelis & CompanyMC
Marcus Corp.MCS
Meredith Corp.MDP
Methanex Corp.MEOH
MutualFirst Financial Inc.MFSF
Herman Miller Inc.MLHR
Marine Products Corp.MPX
Vail Resorts Inc.MTN
Oxford Industries Inc.OXM
Occidental PetroleumOXY
Resources Connection Inc.RECN
Ryman Hospitality Properties Inc.RHP
Retail Opportunity Investments Corp.ROIC
Rollins Inc.ROL
Raytheon CompanyRTN
Ruth's Hospitality Group Inc.RUTH
Steelcase Inc.SCS
Southwest Georgia Financial Corp.SGB
Signet Jewelers LimitedSIG
Six Flags Entertainment Corp.SIX
SYNNEX Corp.SNX
Sotherly Hotels Inc.SOHO
Service Properties TrustSVC
Terex Corp.TEX
Tallgrass Energy LPTGE
Two River BancorpTRCB
Texas Roadhouse Inc.TXRH
Calvin B. Taylor Bankshares Inc.TYCB
United Community Financial Corp.UCFC
USD Partners LPUSDP
United TechnologiesUTX
Vector Group Ltd.VGR
Western Midstream Partners LPWES
Westwood Holdings Group Inc.WHG
Winmark Corp.WINA
Aqua America Inc.WTR
Woodward Inc.WWD

 

On the other hand, the following 17 companies completed 5 years of ever increasing diveys so far this year, becoming aristrocrat Challangers:

New aristrocrats @ 5 years 
BWX Technologies, Inc.BWXT
Employers Holdings, Inc.EIG
Exelon CorporationEXC
1st Constitution BancorpFCCY
W. R. Grace & Co.GRA
Hilltop Holdings Inc.HTH
IBERIABANK CorporationIBKC
Kinsale Capital Group, Inc.KNSL
MGM Growth Properties LLCMGP
Midland States Bancorp, Inc.MSBI
Resources Connection Inc.RGP
Raytheon TechnologiesRTX
Charles Schwab CorporationSCHW
SkyWest, Inc.SKYW
Systemax Inc.SYX
Trane TechnologiesTT
Essential Utilities Inc.WTRG

 

Each month, a spreadsheet of these guys is published at https://www.dripinvesting.org/tools/tools.asp

Click on the Dividend Champions Excel Spreadsheet on this page to download it.

ElLobo, de la casa de la toro caca grande
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Frequent Contributor

Re: Here are the dividend cutters by industry


@Intruder wrote:

Only 40 of SP 500 co have suspended/cut dividends which means that 90% of 408 SP 500 dividend payers are continuing or raising dividends.


I like the way you think

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Frequent Contributor

Re: Here are the dividend cutters by industry


@BruceM wrote:

A couple of more tidbits of interesting dividend-cut info

Per NAREIT, there are 19 mortgage REITs. Per this list, there are 19 MREITs, so with 16 MREITs on the cut list, that just over 84% of all MREITs cut the dividend, and of these, 9 suspended the common dividend, or just under 1/2 of them. Whew! Might this be why these yields are perennially so high? Is the market telling us something about these things? Are we all listening?

Sticking with equity REITs, NAREIT and this list provide the following:

REIT SectorTotalDiv Cut% cut
    
Healthcare16531%
    
Lodging181372%
    
Retail331236%

 

I'm a bit surprised Retail doesn't have a higher participation rate for dividend cuts. Perhaps there are more to come.

It will be interesting to see how the higher quality dividend ETFs, such as VIG, fare for their 2020 dividend, along with other industry ETFs such as XLU as well as consumer staple ETFs such as XLP and VDC.

BruceM


I avoid mortgage Reits because their higher leverage ratio 40% instead of 30% for property Reits leaves  mortgage Reits vulnerable to dividend cuts in a depression/recession. I invest in VNQ because it holds 185 property Reits in 8 different Reit sectors which provides needed diversification with 0.12% ER.

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Frequent Contributor

Re: Here are the dividend cutters by industry

Hey Chuck

Thanks for the list. I did update the above list I've shown with the likes of AAT, GLOP, CWBC, GWB. But there are some others you have listed that did not cut their dividend.

MFSF bought out by Northwest bank, where the dividend received by the former MFSF shareholders actually increased

IR shows no dividend decrease, but did cut the dividend in 2009

RECN not trading so likely merged

RTN merged with UTX ==> RTX, whose 1Q dividend actually increased 17.7%

SGB, TGE, TRCB, VCFC all merged, as did UTX (with RTN). I do not know if the result of the merger changed the dividend amounts existing shareholders received.

WTR changed its name to 'Essential Utilities' where its dividend is unchanged.

And then we get to our favorite dividend stock, VGR, which as we all knew would happen, cut the dividend from $.40 to $.20...and I'm going to venture this has nothing to do with COVID-19. In fact, with people staying home and growing increasingly depressed and anxious, VGR's sales will likely increase.

BruceM

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Frequent Contributor

Re: Here are the dividend cutters by industry

@BruceM 

All that I did was to look at the Fishlist (RIP), from the end of 2019 and compare it symbol by symbol to the end of April list.  Just a bit of manual spreadsheet stuff.  No macros.  I assume the guy got it right, but I can't vouch for him.

ElLobo, de la casa de la toro caca grande
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Re: Here are the dividend cutters by industry

And here are 11 more, bringing the total, at least on this list, to 269

  AnnouncePriorNew   
CompanySymbolDateDividendDividend%ChangeIndustrySector
        
Moorson Coors beverageTAP5/22/2020$0.570100%Consumer DefensiveBeverage
Ross StoresROST5/22/2020$0.290100%Consumer CyclicalApparel
Haliburton coHAL5/22/2020$0.180.04575%EnergyOil drill
Vereit corpVER5/22/2020$0.140.07744%REITSpecialty
SFL CorporationSFL5/20/2020$0.350.2529%industrialsMarine Ship
Air Bus SE ADREADSY5/16/2020$0.500100%industrialsAerospace
Southwest AirlinesLUV5/15/2020$0.180100%industrialsAirlines
Viad CorpVVI5/15/2020$0.100100%industrialsServices
Strattec Security CorpSTRT5/13/2020$0.140100%Consumer CyclicalAuto Parts
Pensky Automotive GroupPAG5/13/2020$0.420100%Consumer CyclicalAuto Parts
Jack In the BoxJACK5/13/2020$0.400100%Restaurant

 

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Re: Here are the dividend cutters by industry

Thanks, Bruce.  The clown master Vicki Hollub led OXY cut the dividend to 1 penny Friday.  Amazing the destruction she brought upon that company with the Anadarko acquisition and other.  Meanwhile Buffett continues to get paid in shares on his $10B preferred holding.  I don't own OXY but do BRK.B  Looking at BIP, and probably not of interest to DI only, I have been buying BAM since March and am full up.  Sifting through the latest Q1 results and capital position I would anticipate significantly higher total return longer term than just holding BIP.       

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Re: Here are the dividend cutters by industry


@Shawzy wrote:

Thanks, Bruce.  The clown master Vicki Hollub led OXY cut the dividend to 1 penny Friday.  Amazing the destruction she brought upon that company with the Anadarko acquisition and other.  Meanwhile Buffett continues to get paid in shares on his $10B preferred holding.  I don't own OXY but do BRK.B  Looking at BIP, and probably not of interest to DI only, I have been buying BAM since March and am full up.  Sifting through the latest Q1 results and capital position I would anticipate significantly higher total return longer term than just holding BIP.       


CVX made the right move to walk away from buying anardako when OXY upped the price and saved itself Mucho denerio as well as collecting a $1B breakup fee. CVX is well positioned with liquidity and reduction in operations costs as well 4B In savings by canceling buyback program. 6% dividend ain’t bad.

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