What Investors Need To Know About Dividend Cuts

Apr. 17, 2024 7:15 AM ET, , , , , , , 42 Comments

Summary

  • Dividend investing provides a growing passive income stream and can make investors agnostic to stock market conditions.
  • Dividend cuts significantly hurt investors by reducing passive income and indicating potential underlying issues with the company.
  • We discuss the causes of dividend cuts, the early warning signs to watch out for, and how to respond prudently when a dividend cut takes place.
  • Looking for a portfolio of ideas like this one? Members of High Yield Investor get exclusive access to our subscriber-only portfolios. Learn More »

Budget Cuts

TimAbramowitz

One of the biggest appeals of dividend investing is that it creates a growing passive income stream that can fund living expenses without forcing you to sell shares of stock at potentially inopportune times. As a result, it makes you

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This article was written by

27.25K Followers

Samuel Smith has a diverse background that includes being lead analyst and Vice President at several highly regarded dividend stock research firms and running his own dividend investing YouTube channel. He is a Professional Engineer and Project Management Professional and holds a B.S. in Civil Engineering & Mathematics from the United States Military Academy at West Point and has a Masters in Engineering with a focus on applied mathematics and machine learning. Samuel leads the High Yield Investor investing group. Samuel teams up with Jussi Askola and Paul R. Drake where they focus on finding the right balance between safety, growth, yield, and value. High Yield Investor offers real-money core, retirement, and international portfolios. The services also features regular trade alerts, educational content, and an active chat room of like minded investors.

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of AQN, WPC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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