2013 Dividend Disappointments

Generally speaking, the only worse words for shareholders than “bankruptcy” are “dividend cut.” When a company slashes its payout, it’s not necessarily a death knell, but it’s almost always an indication of a serious problem of some sort — usually centering around cash. What will happen to the following five companies still remains to be seen, but for now, they all share a common bond in that they’ve either cut back their dividends or suspended them altogether during the first half of 2013:

CenturyLink (CTL) cut its quarterly dividend from 72.5 cents per share to 54 cents in conjunction with weak fiscal fourth-quarter results and the announcement of the company’s expectation that its debt would be downgraded to “junk.” Exelon (EXC) also cut its dividend back in February, from 52.5 cents per share per quarter to 31 cents with a clear desire to save money. Pitney Bowes (PBI) stock amid years of decline was a dividend yield that kept getting juicier. However, some of the air came out of those sails back in late April with a 50% cut to the payout. It has been just a dismal half-year for Cliffs Natural Resources (CLF). Nokia (NOK) announced that it would completely suspend its dividend for the first time since 1989.

Source: InvestorPlace

Related Articles:
- 9 High-Yielding Mega-Cap Stocks
- Best Stocks for 2013
- Dividend Investors Should Focus On Stocks, Not The Market
- The Secret Ingredient of Dividend Growth Stocks
- 9 High-Yield Stocks With A Low Price To Book