Dividend Cuts
This page provides detailed information on all recent dividend cuts or suspensions by US-listed stocks, ranked by date. The size of the dividend cut, the new quarterly rate, and the track record (years of dividend increases lost) are displayed for each company.
2024 Dividend cuts/suspensions
August 22: Medical Properties Trust (MPW) | -46.7% to $0.08 quarterly
August 12: B. Riley Financial (RILY) | -100% to $0.00 quarterly (#0 years, RILY already announced a 50% dividend cut in February)
August 1: Intel (INTC) | -100% to $0.00 quarterly (#0 years, Intel already announced a 68.8% cut in 2023 now followed by a suspension)
May 8: Kennedy Wilson (KW) | -50% to $0.12 quarterly (#11 years)
April 17: Black Stone Minerals (BSM) | -21.1% to $0.375 quarterly (#3 years)
Why do companies cut or suspend their dividend?
Companies reduce or eliminate dividends for several reasons:
Financial Strain: They might be experiencing financial difficulties, needing to conserve cash to maintain operations and meet obligations.
Reinvestment Needs: They may have significant investment opportunities requiring capital, such as expansion projects or acquisitions.
Debt Reduction: To allocate funds towards paying down debt and improving their balance sheet.
Adverse Economic Conditions: In response to economic downturns or industry challenges, companies might prioritize liquidity and financial stability.
Earnings Volatility: Declining or unpredictable earnings might make it unsustainable to maintain previous dividend levels.
Reducing or eliminating dividends can signal to investors that the company is facing financial challenges, but it can also indicate a strategic focus on long-term growth and stability.