These Stocks Are Cutting Dividends | Dividend Stock Analysis

With companies scrambling to preserve capital in the midst of an economic crisis, some are opting to suspend share buybacks and quarterly dividends to shareholders.

Welcome to the 40 finance channel everybody my name is jeff beers today i’m talking about nine popular companies that are cutting their dividends in the in the wake of the virus scare this is important news for investors especially those who have now established a position yet in these companies to be aware that the dividend has been at least temporarily suspended

And as always quick disclaimer this videos for entertainment purposes only make sure you talk to a financial professional before you take on any risk with investing but if you do enjoy stock market analysis investment ideas and personal finance videos then i invite you to subscribe to the forty finance channel thank you to all the subscribers who have signed

Up so far and first on our list today is the boeing company ticker symbol b a and boeing’s annual dividend prior to the announcement was eight dollars and 22 cents per share that’s on an annual basis so a pretty steep cut for investors of boeing stock price right now is at 158 which is well off of its 52-week high of three hundred and ninety eight dollars and

Boeing’s basically gotten you know hit and two different fronts they obviously had the safety of the 737 come into question after a couple crashes so they were already digging out of a hole then you get the virus scare coming in that’s been basically canceled a ton of orders for boeing and they’re actually on the list of potential companies who will get bailed out

By the government so things are not really good in boeing right now and their dividend was one thing that they had going for them if you’re trying to buy into boeing at the bottom so to speak and you’re hoping that the dividend would give you some income during this time of potential recovery that dividend is currently suspended all right next on our list today

Is marriott international marriott hotels their dividend prior to the announcement was a dollar ninety two per share on an annual basis stock price today at seventy eight 58 which is off of its 52-week high of one fifty three thirty-nine so marriott again no surprise to anyone who’s been following the travel industry they obviously are seeing huge vacancy rates in

Their hotels lot of locations have have closed so again there’s still a potential here to buy low for marriott that’s traditionally been a pretty good company but just be aware that it could take several quarters for this dividend to reappear alright next on the list is the ford motor company ford motor company their annual dividend prior to the announcement was 60

Cents per share stock price right now at five dollars and nine cents that’s off of their 52 week high of 1056 so another stock that has dropped 50 percent from its 52 week high and i think with ford what you see right now is just the environment for car sales is small right people are worried about having cash on hand and preserving income high unemployment numbers

Are generally not good for car sales so this is one that i could see you know well all the way through the year 2020 that ford would continue to suspend their dividend that speculation on my part it’s just a gut feel next up we have carnival cruise lines ticker symbol ccl carnival had an annual distribution of $2 per share prior to making that announcement of the

Dividend cut current stock price at thirteen seventy well off of its 52-week high of 56 oh four interval on the other cruise lines have been a pretty popular topic on youtube as investors look for opportunities to really buy at the lowest point of some of these companies and you’ll often see folks talk about the dividend as sort of a fallback plan to buying this

Company low however i think we all sort of suspected across the travel industry that we would see dividend cuts and those are in fact taking shape today so just note that if you try to buy on the bottom for ccl you’ll likely see at least several quarters without a dividend for income next on the list we have macy’s and obviously retail is getting hit hard as well

Their annual dividend prior to the announcement was a dollar fifty one per share current stock price at five dollars and 18 cents well off of its 52-week range no surprise here they had a high of 26 33 over the past 52 weeks they’re down to 518 macy’s of course battling the so-called retail apocalypse with mall traffic declining now you basically have malls being

Closed stores being closed and the dividend now being cut which was at least one positive aspect for investors to consider macy’s next up we got occidental petroleum ticker symbol oxy oxy was once one of the the great gas exploration companies they’ve been through some trials and tribulations over the past couple years and obviously in the current environment we

Have gas prices tanking which i will assume makes the exploration of gas and oil not as profitable so oxy seen a huge downturn here they also had an annual dividend of three dollars and 16 cents until recently they did not entirely suspend their dividend but they did cut it 86% that goes down – 11 cents quarterly are an annual total obviously a 44 cents and what

You have here is a stock that had a 52 week high of 68 83 we’re down to 11 90 the entire energy sectors getting crushed and there’s a lot of uncertainty around oil prices when those will go back up one will demand for oil in general begin to increase again so with oxy right now there’s definitely a lot more risk in the market as opposed to the upside and just

Know that if you’re buying though an oxy formerly very attractive dividend of over $3.00 per year has since been cut significantly alright last one on the board is luxury brand tapestry tapestry most notably mates coach and kate spade products that’s are popular with women and purses and wallets the things of that nature they had an annual dividend prior to the

Change of a dollar 35 per share that has been suspended current stock price of thirteen fifty five and the 52 week high on this one was all the way up to thirty six so again getting hammered big part of that is the broader retail environment so you know ironically enough you would find coach and kate spade at macy’s stores among several others but again retail

Just getting hammered dividends going away tapestry i think is one that’s kind of interesting as a long-term play because they’re not directly retail they do have stores but they also have these brands that i think eventually when the economy bounces back strong brands with kate spade and coach that women have adored for for many years this could be one that i

Would be a little more comfortable with buying on the bottom because i think the value of the kate spade and coach brand is still inherently true it’s just a matter when will the shopping environment come back online from a consumer standpoint when will discretionary money start to flow back into the market so tapestry is actually won at least from a long-term

Perspective i think has some potential so that’s a list of nine stocks that are cutting our suspending dividends effective immediately i’m sure that this list will grow this is not a comprehensive list there are several others out there i try to stay in my lane with companies that i recognized and understood but there is far from the only people out there who are

Cutting dividends and you know what for most of them for most of the stable companies out there this is just a temporary measure but it is important to note that when dividends get cut sometimes you see the stock drop relatively quickly as people bail particularly dividend investors will bail from one dividend stock to the other it just depends on what the company

Is but it’s also important to know that when you buy low on some of these retail and travel plays that’s in restaurants for that matter it’s important to note that you know you will not have the safe and secure income from dividends and that means you have to focus a little bit more on the fundamentals of a business right you have to be able to say i know for sure

That this restaurant group will pop back because they have x amount of cash on hand their concepts are strong etc you can still buy low on all these opportunities but you have to factor in at least in my opinion more due diligence on the balance sheet and how things were growing prior to the crisis to get a good feel for how quickly they can turn the revenue back

On when consumers get back in the market alright guys hope you enjoyed this video please give me a like and subscribe especially if you like stock market analysis i’ll see you on the next video

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These Stocks Are Cutting Dividends | Dividend Stock Analysis By 40 Finance