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This is what happens when you surprise suspend the dividend. This should be a warning to all other CEOs

|Includes:Texas Industries (TXI)

Texas Industries (NYSE:TXI) suspended their dividend October 12th in a surprise announcement since dividend watchers expected them to announce their regular dividend.  

On October 11th, TXI closed at 32.82.   On November 25th is closed at 22.55.  That's a loss of 31% for their shareholders.  They do have a beta of 2, so you'd expect that they'd bounce about more than the S&P.  The S&P over that time period fell from 1207.25 down to 1158.67 for a loss of 4%.  That's negative alpha of 23% since that surprise announcement.

This should be a warning to CEOs.  Surprise dividend cuts cost shareholders big time.  I wouldn't be surprised if changes to management and/or the board happen over the next year.

Stocks: TXI