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Endangered Dividends

Where Dividend Risk Lies in 2023

By Roger S. Conrad on Jan. 10, 2023

We won’t have to wait long to hear Algonquin Power & Utilities’ (TSX: AQN, NYSE: AQN) plan for its dividend this year. The company’s Investor Call on January 12 will likely include revised guidance along with plans to corral debt and the Kentucky Power acquisition from American Electric Power (NYSE: AEP)—now blocked by the Federal Energy Regulatory Commission. Shares are pricing in a dividend cut of at least one-third. What management decides will likely depend on how fast it wants to reduce roughly $3.4 billion in variable rate debt, and whether it walks away from Kentucky Power.

No Cuts this Month but a Longer List

By Roger S. Conrad on Dec. 12, 2022

The Endangered Dividends List has two new members this month: Algonquin Power & Utilities (TSX: AQN, NYSE: AQN) and Vodafone Group (London: VOD, NYSE: VOD).

Lumen Cuts: Other Small Telecoms Could Soon

By Roger S. Conrad on Nov. 14, 2022

Wireline communications company Lumen Technologies (NYSE: LUMN) eliminated its quarterly cash dividend this month. That brings total year-to-date cuts in the Utility Report Card coverage universe to nine.

Dividend Cuts: Reasons are Important

By Roger S. Conrad on Oct. 10, 2022

This year is shaping up as a banner one for dividend increases in the Utility Report Card coverage universe. So far, 103 of the 179 companies tracked have raised their payouts at least once. And I count roughly three-dozen more that will almost certainly deliver a boost between now and December 31.

Foreign Stock Dividends: Facing a US Dollar Headwind

By Roger S. Conrad on Sep. 8, 2022

Since the start of 2022, the US Dollar Index is up about 15 percent to its highest level since 2001. That’s the result of determined inflation-fighting by the US Federal Reserve in the context of a still relatively strong US economy.

No Cuts But Danger Lurks

By Roger S. Conrad on Aug. 8, 2022

There are growing signs of a deeper recession ahead. And the US Federal Reserve is unrelenting pushing borrowing costs higher to bring down inflation to its long-term target of 2 percent.

Growing Recession Odds Mean Rising Dividend Risk

By Roger S. Conrad on Jul. 11, 2022

Recession may not be inevitable for the US economy this year. But with the US Federal Reserve doing its best Paul Volcker impression, it’s well past time for investors to prepare against the worst.

Shrinking the List in a Strong Sector

By Roger S. Conrad on Jun. 10, 2022

Uncertainty is the order of the day for the economy and investment markets. But ironically, with Q1 results and guidance updates all in, 12 to 18 month dividend risk continues to drop for the essential services companies tracked in the Utility Report Card.

No Cuts, But No Exits and One New Entry

By Roger S. Conrad on May. 9, 2022

If all management teams live within their means, there would be no need for an Endangered Dividends List. But reality is businesses take risks in good times that come back to burn them in bad ones. And the five companies on the EDL reporting Q1 results so far still have some very real vulnerability.

One Cut, Two Exits and One New Entry

By Roger S. Conrad on Apr. 11, 2022

Chinese power producer Huaneng Power International (HK: 902, NYSE: HNP) did not declare a dividend for fiscal year 2021. That means investors will likely have to wait until calendar 2023 for a cash payout.

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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