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Endangered Dividends

Dividend Risk: Three Expected Cuts

By Roger S. Conrad on Mar. 10, 2020

Calendar Q4 earnings results are almost all in for the nearly 200 essential services companies in our Utility Report Card coverage universe.

Takeaway one: Except for the handful of weaklings headed for bankruptcy like Frontier Communications (NYSE: FTR), most are thriving and dividends are safe.

Dividend Risk: Concentrated in Telecom

By Roger S. Conrad on Feb. 10, 2020

Energy pipelines are the highest yielding sector in our Utility Report Card coverage universe. Ironically, after a five-year bear market, dividend risk is actually quite low for the handful of companies and master limited partnerships we track.

Where Last Year’s Dividend Cutters Stand Now

By Roger S. Conrad on Jan. 12, 2020

16 Utility Report Card companies reduced their dividends in calendar year 2019. That compares to 128 raising payouts, 23 that held them level and 27 that currently pay no dividend.

No Cuts this Time, but Two Companies Join the List

By Roger S. Conrad on Dec. 9, 2019

It’s survival of the fittest in the communications sector. And as rising competition, surging capital spending and tough regulation shrink free cash flow, the wave of dividend cuts is hitting all but the largest and strongest players.

Deutsche Telekom Cuts But Real Danger Lies Elsewhere

By Roger S. Conrad on Nov. 11, 2019

Deutsche Telekom (Germany: DTE, OTC: DTEGY) cut in its annual dividend to 60 Euro cents, from last year’s 70 Euro cents rate. The move surprised us because business is good.

Few Names but Many Dangers

By Roger S. Conrad on Oct. 7, 2019

Buckeye Partners (NYSE: BPL) exited the Endangered Dividends List last spring, following its all-cash takeover offer of $41.50 per share from Australia’s IGM Investors in May. Last week, the deal inched closer to a fourth quarter 2019 close, as the Committee on Foreign Investment in the US and Pennsylvania Public Utilities Commission signed off.

Just Energy Eliminates Dividends, Landmark Cuts Guidance Again

By Roger S. Conrad on Sep. 8, 2019

Just because someone is offering doesn’t necessarily mean anyone will buy. That’s the hard lesson for shareholders of retail energy marketer Just Energy Group (TSX: JE, NYSE: JE). The stock has lost nearly -70 percent of its value since management announced a “strategic review” due to “outside interest” in early June.

Centrica Plc Cuts, Retail Energy Teeters

By Roger S. Conrad on Aug. 5, 2019

UK-based integrated energy company Centrica Plc (London: CNA, OTC: CPYYY) will cut its semi-annual dividend payable in November to GBP1.50 per share, from the year ago rate of GBP3.60. Management also announced a reduction in the “Final” dividend to be declared in February from GBP8.40 to GBP3.50 per share.

Don’t Count on Takeovers to Bail Out Endangered Dividends

By Roger S. Conrad on Jul. 5, 2019

Buckeye Partners’ (NYSE: BPL) first quarter earnings results had all the hallmarks of a company careening towards another distribution cut. Then Australian private infrastructure fund IFM came along with a $41.50 per unit all-cash takeover offer. That’s given long-suffering unitholders their best opportunity to cash out since early 2018.

Vodafone Cuts: Other Global Telecoms May Follow

By Roger S. Conrad on Jun. 9, 2019

Management’s rationale is identical to that of other telecoms cutting the past couple years. It needs more cash to tackle a wall of pending debt maturities, even as capital spending needs pick up for next generation 5-G wireless and competition pressures 4-G revenues.

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ABOUT ROGER CONRAD

Roger S. Conrad needs no introduction to individual and professional investors, many of whom have profited from his decades of experience uncovering the best dividend-paying stocks for accumulating sustainable wealth. Roger b