The Shrinking Universe of Dividend Aristocrats [View article]
When times are tough rational agents reduce expenditures, work harder, and conserve cash. Rational companies in this environment should reign in dividend payments, hoard reserves, and take advantage of competitive weaknesses in their product markets.
The bad companies are the ones that attempt to retain dividend levels for show, or for the sake of it. Be careful of this sort of irresponsible management.
When analyzing dividend yields for long-term investors, try to think about how the company will emerge from the downturn. If stronger, or generally in tact, consider pre-downturn dividend streams in your calculations.
Wall Street Breakfast: Must-Know News [View article]
The Shrinking Universe of Dividend Aristocrats [View article]
The bad companies are the ones that attempt to retain dividend levels for show, or for the sake of it. Be careful of this sort of irresponsible management.
When analyzing dividend yields for long-term investors, try to think about how the company will emerge from the downturn. If stronger, or generally in tact, consider pre-downturn dividend streams in your calculations.