After two nasty dividend cuts on S&P 500 stocks earlier this year, it's not surprising that investors are questioning the likelihood of Pitney Bowes (PBI), which offers the 2nd-highest yield in the S&P 500 at 10.5%, sustaining this generous payout. While the CenturyLink (CTL) and Cliffs Natural Resources (CLF) reductions announced on February 13th were surprises that led to sharp declines in their stocks, there has been significant discussion about PBI already. Adding fuel to the fire regarding a potential reduction, the company skipped raising it in January, breaking from its historical practice in recent years. I believe that the recent pullback reflects nervousness regarding this issue, as the company will be reporting Q1...
Don't Expect Pitney Bowes To Slash Its Double-Digit Dividend Yield
Apr 22 2013, 05:15 | about: PBI
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