RE: RE: Still A Dividend PlayEvery post that keeps talking about cutting the Dividend is just ashorters dream. EVERY stock I have seen that drop its Dividend ...guesswhat ...the SP dropped too! Are you people nuts!
Every stock that has cut its dividend unexpectedly has seen its share price punished. The market expects a cut and if it happens the share price will likely rebound with the uncertainty gone. My thinking is there will likely be a cut but not a total elimination. Reduced earnings over the next couple of years and their stated dividend policy will take care of that. And yes, I believe it will take a couple of years for this to play out as to whether they sink or swim.
The one question I have is, will they make a change to the dividend policy, say to pay out 40-50% instead of 60-70%, to reduce the dividend further?
Cheers.