Dividend Cut & Suspension List: What To Do

Several companies cut or suspended their dividend in early 2020 amid the COVID-19 impact on the economy. Should you keep your shares or not? This is the answer we will give you according to our dividend growth investing model. Some deserve to be kept even after a cut, but be prepare to be ruthless against most dividend cutters.

Dividend Cut & Suspension List

In this new section, we will track to the best of our knowledge all the dividend cuts and suspensions announced by companies we follow during the COVID-19 crisis. This is not a complete list as we wanted to provide additional comments on most companies listed below. We will also tell you if we consider the company a “hold” or a “sell” depending on the reason why it cut/suspended its dividend.

Company Name Ticker Cut/Suspension Hold / Sell
Vermilion Energy VET 83% cut SELL
Occidental Petroleum OXY 79% cut SELL
Park Hotels & Resorts PK Suspension HOLD
Crescent Point Energy CPG 75% cut SELL
Marriott International MAR Suspension HOLD
Ford F Suspension SELL
Boeing BA Suspension HOLD
Delta Air Lines DAL Suspension HOLD
Darden Restaurants DRI Suspension HOLD
TJX Companies TJX Suspension HOLD
Helmerich & Payne HP 65% cut SELL
LEAR LEA Suspension HOLD
Anheuser-Busch InBev BUD 50% cut SELL

Additional thoughts for each of the dividend cutters

Vermilion Energy

VET posted a disastrous quarter and blamed the virus for the dividend cut. The company says it cut the dividend in response to “weakness in commodity prices and reduced global economic prospects following the outbreak of the novel coronavirus.” Q4 fund flows from operations totaled $216 million, in line with the previous quarter despite a significant inventory build in Australia, while full-year FFO hit a record $908 million, up 8% Y/Y. Q4 production rose 1% Q/Q to 97,875 boe/day, and full-year output increased 15% to a record 100,357 boe/day, reflecting a full-year contribution from assets acquired in 2018 and organic growth from the Netherlands, Australia and the U.S.

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You can find our Canadian dividend cuts & suspensions list over at ...

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