Endangered Dividends
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.
Three Dividend Cuts, Another in Danger but No Sells
By
Roger S. Conrad on
Mar. 14, 2022
Korea Electric Power (Korea: 015760, NYSE: KEP) still hasn’t declared an annual dividend for payment next month. But the company is effectively priced for a zero payout, after announcing a record operating loss for 2021 and guidance for an even larger one this year.
Two Cuts and Two New Additions
By
Roger S. Conrad on
Feb. 14, 2022
Wind power components maker Vestas Wind (Denmark: VWS, OTC: VWSYF) has reduced its annual dividend by -78.1 percent. That follows a challenging 2021, with rising raw materials and shipping costs deflating profit margin to 3 percent of revenue. And the decision to cut reflects management’s belief tough conditions are likely to last “throughout” 2022.
Where Weakness Lies
By
Roger S. Conrad on
Jan. 14, 2022
TransAlta Renewables Inc (TSX: RNW, OTC: TRSWF) has determined that it will have to replace all 50 turbine foundations at the Kent Hills 1 and 2 wind power sites—due to “deficiencies in the original design.”
Pay Now, Cut Later
By
Roger S. Conrad on
Dec. 13, 2021
Starting in mid-May, investors haven’t treated shares of AT&T Inc (NYSE: T) very well. That’s when management announced the spinoff of Warner Media, and a still unspecified dividend cut.
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.
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Endangered Dividends List
Warning: Falling Dividends.
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