Tuesday, November 11, 2008

The Rock is Chipped: Prudential Dividend Cut Nearly in Half

Prudential joins the growing list of companies to slash its dividend by a considerable amount. They went ahead and declared a dividend reduction of slightly less than 50%.

This gives more fixed income folks trying to make it on dividend payouts a clownsuming haircut. Others looking for growth or to feel wealth are also going to feel the pinch as company after company lines up to preserve cash. If I were a company owner and paying a dividend, had a need for cash, even no specific need for said cash, and eyeing the Obama taxing policies; I, too, would slash the dividend instead of seeing it handed over to the Treasury to evaporate on dumb policy such as mortgage write-downs or free money to poor people who are typically poor due to mismangement of said money.

Related:

Fixed Income, Difficult to Come In?

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