So far the statistics show that breaking with a dividend stock after a cut is a smart way to preserve wealth.
On Mar 02 02:58 PM antiquary wrote:
> Cutting a dividend indicates the company doesn't have a firm grip > on its business? Only in ordinary times. This is no cyclic downturn. > > > These days, selling a company because it's cutting a dividend is > like breaking up with a nymphomaniac with multiple personality disorder > because she's currently on a rare personality that doesn't want to > sleep with you. These companies have the dividend habit. They'll > be back, and reward most those who had faith in them.
My reviews of companies cutting or eliminating dividends suggest that more bad news are ahead for stockholders in those that provide negative dividend news. I do write how much the stock has increased or decreased in a given week, but that's because I provide the dividend cuts on a weekly basis. I wish I had started tracking dividend cuts a long time ago.. In a previous post I posted a chart from Ned Davis research, showing that dividend cutters or eliminators underperform the dividend growers and initiators over the long-term. So I wouldn't expect these stocks on average to perform well over time.
On Nov 25 02:48 PM Aalan wrote:
> If a business is losing cash flow due to market conditions beyond > its control, I'd rather it maintain its long-term viability by putting > its remaining cash to working more efficiently, rather than cannibalize > itself to make stockholders happy for another quarter. If you're > only interested in short-term trades, then your response makes sense--but > don't blame the business model; that's strictly market-timing.
Those are some pretty good stocks out there for which I have never heard anything yet.
stc1,
Nobody would take your comments seriously unless you provide some hard data evidence that David Powell's calculation data is wrong. You might be correct, but please next time you criticize something, please have your backup ready.
Guliamo,
What you are saying about RYN is generally correct. It doesn't have to chop down trees if it doesn't like the price. But how else is the company going to be able to generate the cashflow to pay dividends to shareholders?
Markets Punish Dividend Cutters [View article]
So far the statistics show that breaking with a dividend stock after a cut is a smart way to preserve wealth.
On Mar 02 02:58 PM antiquary wrote:
> Cutting a dividend indicates the company doesn't have a firm grip
> on its business? Only in ordinary times. This is no cyclic downturn.
>
>
> These days, selling a company because it's cutting a dividend is
> like breaking up with a nymphomaniac with multiple personality disorder
> because she's currently on a rare personality that doesn't want to
> sleep with you. These companies have the dividend habit. They'll
> be back, and reward most those who had faith in them.
Markets Punish Dividend Cutters [View article]
My reviews of companies cutting or eliminating dividends suggest that more bad news are ahead for stockholders in those that provide negative dividend news. I do write how much the stock has increased or decreased in a given week, but that's because I provide the dividend cuts on a weekly basis. I wish I had started tracking dividend cuts a long time ago..
In a previous post I posted a chart from Ned Davis research, showing that dividend cutters or eliminators underperform the dividend growers and initiators over the long-term. So I wouldn't expect these stocks on average to perform well over time.
On Nov 25 02:48 PM Aalan wrote:
> If a business is losing cash flow due to market conditions beyond
> its control, I'd rather it maintain its long-term viability by putting
> its remaining cash to working more efficiently, rather than cannibalize
> itself to make stockholders happy for another quarter. If you're
> only interested in short-term trades, then your response makes sense--but
> don't blame the business model; that's strictly market-timing.
Top 15 Dividend Paying REITs [View article]
stc1,
Nobody would take your comments seriously unless you provide some hard data evidence that David Powell's calculation data is wrong. You might be correct, but please next time you criticize something, please have your backup ready.
Guliamo,
What you are saying about RYN is generally correct. It doesn't have to chop down trees if it doesn't like the price. But how else is the company going to be able to generate the cashflow to pay dividends to shareholders?