Financial Acumen

Why It's Wise to Sell on Dividend Cuts

@Bob Lunn,

"What is your way of determining if a stocks dividend is going to be cut?"

I'd check out the payout ratio. The logic is very similar, in that if the payout ratio increased by a significant amount, like say, from 20% of earnings to 85%, or even over 100%, then you have a key indicator of an unsustainable dividend. Such numbers are published in the S&P STARS reports that are generally free for anyone with a brokerage account.