As if investing hasn't been difficult enough this year. With all the dangers in the minefield of bank closures, fixed income folks need to ensure that their Certificate of Deposit [CD] are not in excess of FDIC limits (FDIC closed their 19th bank last week). Additionally, these same CD are being impacted by a too-low Federal Funds rate and barely pay a decent return. Then they look to US Treasury Bills and see no decent return there. A quick glance at the stock market sends some chills down their spines. Dividend bearing stocks might look attractive.
Wait!!!!!!!!! Consider that dividends can and do get cut as well as potential for capital loss as the shares sink to previously considered impossible prices. Here's a list of some dividend cuts and suspensions to show you how widespread this behavior is in the cash-is-king market mentality as the globe slows.
EW Scripps Co. (SSP) [suspended]
McClatchy Co. (MNI) [reduced in half]
Media General Inc. (MEG) [almost halved]
A.H. Belo Corp. (AHC) [reduced in half]
GateHouse Media Inc. (GHS) [suspended]
Carnival Corp (CCF) [suspended]
Genworth Financial (GNW) [suspended]
Macquarie Infrastructure Co. (MQG) [lopped about 70% off]
Magna International Inc. (MGA) [reduced in half]
Asbury Automotive Group Inc. (ABG) [suspended]
American Capital (ACAS) [suspended]
Developers Diversified Realty Corp. (DDR) [suspended]
Hartford Financial Services Group Inc. (HIG) [cut about 25%]
Chemtura Corp (CEM) [suspended]
Orient-Express Hotels Ltd's (OEH) [suspended]
CNA Financial Corp. (CNA) [suspended]
The First Bancshares, Inc. (FBS) [suspended]
NewBridge (NBBC) [suspended]
ING (ING) [suspended]
Macatawa (MCBC) [suspended]
BCE (BCE) [suspended]
Imation (IMN) [reduced in half]
Suntrust Banks Inc. (STI) [reduced by 30%]
Protective Life Corp. (PL) [almost cut in half]
and many more..
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