Endangered Dividends
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.
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.
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Endangered Dividends List
Warning: Falling Dividends.
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