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2016/10/03

More Dividend Cuts to Come

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Investment U Special Opportunities
 
Monday, October 3, 2016
 

More Dividend Cuts to Come

 
 
Earnings season isn't looking good...
 
"A near-record number of companies in the index issued guidances below Wall Street’s expectations," according to The Wall Street Journal.
 
And with poor earnings come dividend cuts.
 
We're already seeing it in some areas.
 
Kinder Morgan cut its dividend by 74%... and shares dropped around 68% on the year.
 
Marathon Oil cut its dividend by 76%.
 
Freeport-McMoRan suspended its dividend completely.
 
And even companies outside of energy are getting in on the cuts.
 
Like Wynn Resorts, which cut its dividend by 67%... and CenturyLink, which cut its dividend by 25%.
 
The point is... the rest of 2016 may be a continued bloodbath for some dividend-paying stocks, especially considering how bad this earnings season is.
 
However, there is some good news.
 
Investors will inevitably move into stocks that continue to raise dividends.
 
Our portfolios are full of those stocks. In fact, not one stock in our current portfolio has had its dividend cut.
 
With so few opportunities out there to capture income, it's very important that you ensure the dividends you're collecting are safe.
 
 
Good investing,
 
Andrew
 

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