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Endangered Dividends

A Short List, But Heavy Debt Can Still be Deadly

By Roger S. Conrad on May. 10, 2021

Heavy debt and revenue under pressure: Those are always the two biggest risks to dividends. And when combined, a cut is usually on the way. Both are common maladies for the four remaining companies on my Endangered Dividends List.

When Gauging Dividend Safety Watch the Debt

By Roger S. Conrad on Apr. 12, 2021

So far, 2021 is shaping up favorably for dividends in our Utility Report Card coverage universe. That’s thanks to last year’s aggressive measures to shore up balance sheets as well as the firming global economy.

3 Cuts Down Under, An Exit and Two New Entrants

By Roger S. Conrad on Mar. 8, 2021

Three energy utilities “down under” have announced next semi-annual dividends will be lower than the previous year’s: AGL Energy (ASX: AGL, OTC: AGLXY) by -12.8 percent, Contact Energy (NZ: CEN, OTC: COENF) by -12.5 percent and Origin Energy (ASX: ORG, OTC: OGFGY) by -16.8 percent.

No Cuts But Some Possible Exits

By Roger S. Conrad on Feb. 8, 2021

Zero companies in our Utility Report Card coverage universe announced dividend cuts last month. To date, only a small number have shared calendar Q4 results and guidance. But that’s still a very good sign managements are comfortable with steps taken so far to deal with what for most are still quite challenging business conditions.

Where 2021 Dividend Risk Lurks

By Roger S. Conrad on Jan. 11, 2021

Last year, 25 coverage universe companies cut or eliminated dividends. That’s more than one in eight we track and compares to just 16 in 2019. And it was the largest number in at least a decade for this group of ordinarily super-stable and financially strong companies.

Buying into Dividend Cut Risk

By Roger S. Conrad on Dec. 8, 2020

Avoiding companies at elevated risk to dividend cuts is a time-honored tenet of income investing. That’s because reductions typically add insult to injury by triggering selloffs in offending stocks.

Two More Midstream Cuts

By Roger S. Conrad on Nov. 9, 2020

Energy Transfer LP (NYSE: ET) and Infraestructura Energetica (Mexico: IENOVA, OTC: IENVF) are the 25th and 26th dividend cutters from our Utility Report Card coverage universe in calendar 2020.

The silver lining is management’s decisions were clearly made for preference, rather than of necessity. That’s encouraging for both companies as well as others we track, with the result our Endangered Dividends List is the shortest it’s been all year.

No Cuts, But Some New Names

By Roger S. Conrad on Oct. 12, 2020

Essential services companies by their nature provide something that’s always needed. So it takes a major catastrophe this year’s pandemic and economic fallout to really shake up our Utility Report Card coverage universe.

Origin Cuts, Superior and PPL Change Places

By Roger S. Conrad on Sep. 8, 2020

The price of oil has been steady for a while around $40 a barrel and natural gas is over $2.50 per thousand cubic foot. But some energy companies are still downsizing dividends. Origin Energy (ASX: ORG, OTC: OGFGY) is cutting its semi-annual dividend for October to 10 cents Australian. That’s haircut of roughly one-third for the Australian power producer, electricity retailer and LNG investor.

Three More Energy Cuts

By Roger S. Conrad on Aug. 10, 2020

Oil prices have stabilized around $40 a barrel the past two months. And a hotter than anticipated summer has pushed North American benchmark natural gas to more than $2 per million British Thermal Units.

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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