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Endangered Dividends

Strategic Dividend Cuts That Make Sense

By Roger S. Conrad on Aug. 7, 2023

When a company cuts its dividend, its share price usually craters. The exception is if the reduction is part of a larger strategic move that makes sense. That’s the case for Aggressive Holding MDU Resources (NYSE: MDU), which reduced its quarterly dividend for payment in October by -43.8 percent to 12.5 cents per share.

For Dividend Safety Watch the Debt

By Roger S. Conrad on Jul. 10, 2023

Thus far in 2023, seven Utility Report Card companies have announced lower dividends than they paid in 2022. None, however, have done so since March. And 97 have raised payouts at least once, with three-dozen more ready to follow their lead.

No Cuts But 3 Telecoms Get Closer

By Roger S. Conrad on Jun. 12, 2023

First the good news: No companies in our Utility Report Card coverage universe announced dividends cuts last month. The bad news is none escaped the Endangered Dividends List. And in fact, the situation for several worsened, raising odds of cuts. That includes especially the three communications stocks: Telephone and Data Systems (NYSE: TDS), Uniti Group (NSDQ: UNIT) and Vodafone Group (London: VOD, NYSE: VOD).

No Cuts, Two Exits and One New Addition

By Roger S. Conrad on May. 11, 2023

There were no additional dividend cuts in the Utility Report Card coverage universe this month. And two companies earned an exit from the Endangered Dividends List, thanks to better than expected Q1 results and guidance. NuStar Energy (NYSE: NS) is still challenged by heavy debt taken on in the previous decade. And despite minimal maturities through 2024, management will have to devote the energy midstream company’s spare cash to paring down its $4.6 billion of borrowings. That’s almost three times the stock’s current market capitalization and includes nearly $2.1 billion with variable rates.

Beware Those Yet To Cut

By Roger S. Conrad on Apr. 10, 2023

We’re barely three months in. But already, 80 Utility Report Card companies have announced dividend increases for 2023. I expect many others to join them in the next few months.

Fortum Cuts, Southwest Gas Warns

By Roger S. Conrad on Mar. 10, 2023

Fortum OYJ (Finland: FORTUM, OTC: FOJCF) is breaking its annual dividend for calendar 2023 into two semi-annual payments for April and October. The total of 91 Euro cents is an effective 20 percent cut from 2022’s annual payment of EUR1.14 per share. Management telegraphed a reduction late last year, when the largesse of the German government allowed it to escape the meltdown of Uniper SE. The company ultimately exited the power generation company and energy retailer it had spent years pursuing with a loss of roughly EUR6 billion.

More Cuts Highlights Dividend Danger in 2023

By Roger S. Conrad on Feb. 9, 2023

Two Utility Report Card companies have cut dividends so far in 2023. Highlighted in the January 12 update “Algonquin Re-Sets: What’s Next,” combination utility and renewable energy producer Algonquin Power & Utilities’ (TSX: AQN, NYSE: AQN) is cutting its common stock dividend by -40 percent to 10.85 cents per share.

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.



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