Consumer Staple Co. Supervalu Cuts Dividend

Last week Dividend Aristocrat Supervalu (SVU) cut the company's dividend by 50%. SVU becomes the first consumer staples stock to reduce its dividend.

• The new quarterly dividend is reduced to 8.75% from 17.5%.

• The company's second quarter earnings came in at 35 cents per share versus 61 cents per share in the same quarter last year.

• Full year earnings for February 2010 are estimated to come in at $1.94 and February 2011 earnings are projected at $2.01.

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Comments

[Dividend Gr...:]

Funny thing is, the raised dividend back in May and also announced an increase to their stock buyback. I don't own any SVU stock, although I was considering purchasing some..

Oct 27 09:18 AM

[a. palmer jr.:]

I don't own any shares either and wouldn't consider it since they cut the dividend...might be a great time to sell if I owned any, though.

Oct 27 11:08 AM

[Bottom Up I...:]

The dividend cut had been expected for a while. New CEO in June, he wants to pay down debt. It won't be easy, but, in my opinion, the stock has a got a much longer runway than KR and SWY given higher debt, and lower private label exposure. As they make headway on these front, look for its multiple to expand on an absolute and relative basis.

Oct 28 08:09 PM