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Endangered Dividends

One Cut, Three Exits and Two More to Watch

By Roger S. Conrad on Nov. 8, 2021
Shenandoah Telecom (NSDQ: SHEN) has settled on a new annual dividend rate of 7 cents per share, paid December 1. As expected, that’s a substantial haircut from the previous 34 cents. But after this year’s sale of wireless operations to T-Mobile US (NSDQ: TMUS) and the August special cash payout of $18.75 per share, it’s about the best outcome shareholders could have expected.

Beware Talk of “Right-Sizing”

By Roger S. Conrad on Oct. 11, 2021

AT&T Inc (NYSE: T) still sells for less than 8.7 times expected 2021 earnings. And PPL Corp (NYSE: PPL) yields 2.5 percentage points more than the Dow Jones Utility Average. Why the deep discounts? Because neither company’s management has come clean on how much they intend to cut dividends after completing major transactions early next year, other than to say they intend to “right size.”

Ripping Off the Band-Aid

By Roger S. Conrad on Sep. 6, 2021
We’re still waiting on AT&T Inc (NYSE: T) and PPL Corp (NYSE: PPL) to rip off the band-aid: Publicly setting numbers for dividend cuts they’ve warned about for 2022.

Deal Now, Cut Later

By Roger S. Conrad on Aug. 9, 2021
Announce a headline-worthy M&A transaction and promise meaningful debt reduction and stock buybacks. Then warn of a future unspecified dividend reduction after the close.

An Unconventional Cut

By Roger S. Conrad on Jul. 3, 2021
DTE Energy (NYSE: DTE) has declared a dividend of 82.5 cents for payment in October. That’s -24 percent lower than what it’s paying this month. But it’s hardly a payout cut in the conventional sense.

Deleveraging Needs Drive Dividend Cuts

By Roger S. Conrad on May. 31, 2021

The combination of heavy debt and pressured revenue drove dividends cuts at 25 of the essential services companies in our Utility Report Card coverage universe last year. It triggered 16 in 2019 and five more so far this year, last month AT&T Inc (NYSE: T) and Singapore Telecom (Singapore: ST, OTC: SGAPY).

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.

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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