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Recommendations: 31
US Economy is growing?- correct
US Corporate profits as a percentage of GDP is at the top of the trendline?-correct
Company dividends are flat to up for all companies? WRONG
One of the more surprising pieces of data I have seen recently is that an increasing number of companies are CUTTING their dividends. Maybe I have been in the cave too long and have missed those announcements in the media.
Standard and Poor’s covers 3,098 companies in their September report. Since 2004, between 0 and 10 companies cut their dividend each month. That was the case until the credit crisis hit in 2008 resulting in a peak of 80 companies cutting their dividend. S&P shows 22 companies cutting their dividend in the last monthly report.
In this case a graph is worth a thousand words, so I recommend you click on this link to see the history:
http://politicalcalculations.blogspot.com/2012/10/dividends-...
I do not have the names of the 22 companies, but I will attempt to find them. Maybe they tell a clear story which is not apparent to the broad viewer. . .
Thanks,
Yodaorange
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Announcements
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