Endangered Dividends
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.
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.
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