Which companies cut dia dividends?

A dividend na promise wey company fit choose to break. For investor wey dey count on the income, cut na the main risk, and e usually land when the stock don already dey fall. This page dey collect notable dividend cuts among big US companies for the past six years, each one measured from one year total per-share payout to the next. Stock splits dey lower per-share dividend without cutting the income, so the names here na from set of major companies wey no split for the window.

The steepest cuts among big names

WITH annual AS (
    SELECT ticker, toYear(ex_dividend_date) AS y, round(sum(cash_amount),4) AS div
    FROM global_markets.stocks_dividends
    WHERE frequency IN (1,2,4,12) AND ex_dividend_date >= '2015-01-01' AND ex_dividend_date < toStartOfYear(today())
      AND ticker IN ('T','WFC','VFC','PARA','OXY','F','BA','KSS','GPS','M','NWL','DIS','INTC','WBA','SPG')
    GROUP BY ticker, y
),
f AS (SELECT ticker, y, div, lagInFrame(div) OVER w AS prev FROM annual WINDOW w AS (PARTITION BY ticker ORDER BY y ASC))
SELECT concat(ticker, ' ', toString(y)) AS cut, round(prev,2) AS before_cut, round(div,2) AS after_cut, round(100*(div/prev-1),1) AS pct_change
FROM f WHERE prev IS NOT NULL AND div < prev*0.85 AND div > 0 AND y >= toYear(today())-6
ORDER BY pct_change ASC LIMIT 14

At the top of the list, OXY 2021 fall -95.1%, from $0.82 a year to $0.04. Many of the deepest cuts share one year, 2020: airlines, retailers, and energy producers pull or slash their payouts for the first months of the pandemic, when revenue fall away inside one quarter. The more recent names for the list, for the shallow end, na company-specific, no be market-wide, reminder say cut no be only crisis event.

The 2020 cluster read like map of the shutdown. Energy producers cut as oil briefly trade below zero, department stores and apparel sellers cut as malls close, and travel and industrial names cut as orders stop. Dividend na cash wey them dey pay out, and once the cash stop to arrive, the payout na among the first line items to comot. The recovery wey follow no restore most of these dividends to where them don be; cut easy to make and slow to reverse.

Every figure na per-share annual total. Dividend wey halve na real loss of income; dividend wey fall only on paper after stock split no dey here, na why household names wey split their shares no dey.

Wetin cut dey cost holder

Cut land twice. The income fall first, by exactly the percentage inside the table, on payment wey holder don likely build into budget. The stock price usually fall with am, and often ahead of am, as the market price inside the strain before the board act. Investor wey dey hold for the yield fit end up with less income and lower share price at the same moment, the opposite of the steady compounding wey them buy the position for. Selling into that drop lock in the loss; holding mean accepting smaller check. Neither one no be the outcome wey them choose the dividend for, na why the durability of payout matter as much as the size.

Blue chip wey cut: AT&T

SELECT toString(toYear(ex_dividend_date)) AS year, round(sum(cash_amount),2) AS annual_dividend
FROM global_markets.stocks_dividends
WHERE ticker = 'T' AND frequency IN (1,2,4,12) AND ex_dividend_date BETWEEN '2018-01-01' AND toStartOfYear(today())
GROUP BY year ORDER BY year

AT&T hold her annual payout near $2 for years, then reset am lower for 2022 alongside the spin-off of her media arm. The annual dividend settle at $1.11, roughly one-third below where e don dey. Payer of decades resize her dividend for one step, and her yield don run high, common warning, well before the cut arrive.

How to read cut before e land

Dividend under strain dey tend to leave marks. Yield wey far above company own history and her peers na one: the market dey mark the stock down faster than the company don mark the dividend down. Payout wey consume most or all of earnings, or exceed free cash flow, na another one, since the gap must close from somewhere. Stock wey dey sustained decline na third one, as the cut and the price often dey move together.

The opposite signal na long, unbroken record of raises. The companies with two decades of rising dividends na the ones wey treat the payout as close to untouchable through recessions and shocks. Cut and multi-decade growth streak dey sit for the two ends of dividend safety, and the data for this page na one end of am.

FAQ

Which big companies don cut their dividends recently?

Over the past six years, notable cuts among major US names include the 2020 pandemic wave (energy, airlines, and retailers) and later company-specific cuts. The steepest for this set na OXY 2021, down -95.1%. AT&T reset her dividend about one-third lower for 2022.

Why companies dey cut dividends?

Cut dey free cash when earnings or cash flow no longer cover the payout, when debt need paying down, or when company dey reshape itself through spin-off or restructuring. The common thread na say the dividend dey consume cash wey company decide say e need elsewhere.

How I fit tell if dividend dey at risk?

Warning signs include yield well above the stock own history, payout ratio near or above 100% of earnings or free cash flow, and falling share price. None guarantee cut, and together them raise the odds.

Do stock splits count as dividend cuts?

No. Split dey lower the per-share dividend and the share price by the same ratio, so the income and the yield no change. This page exclude split-driven drops and the names wey split over the window.

Every number here come from the stored query beneath am. Expand any panel to audit the payout history, or measure holding dividend record yourself for the Strasmore terminal. For the other end of the spectrum, see two decades of rising dividends; to weigh dividend against risk-free alternative, see dividend yield versus Treasury yield.