Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 1
I just had a chance to update our financial records for the past few weeks, and one of the updates I made was to input our dividends received into Quicken. In this global pandemic and economic slowdown where the big financial news stories have been companies slashing dividends left and right, I figured our dividends would be down.

Instead, I was pleasantly surprised to find they were stable -- to even slightly up on a year over year basis, particularly in the account that used to be known as the iPIG portfolio. Quarter to date, dividends in that account are up about 6%. In addition, enough stocks in that account that I expect to pay dividends during the remainder of the quarter have declared their dividends such that the total of those dividend declarations are enough to assure the account will receive more in dividends in the AMJ quarter of 2020 than it did in the AMJ quarter of 2019.

That's a testament to the balance sheet component of the former iPIG portfolio's selection process. It would not surprise me at all to see lower earnings and revenues across many of those businesses when it comes time for them to report their AMJ 2020 earnings. That they still felt comfortable enough despite the slowdown and uncertainty to continue paying their dividends despite those very real external and internal issues says a lot about their financial reserves.

All that said, I'm not sure how long those dividends will last. A strong company can maintain its dividend during a short window of challenges, but the longer the slowdowns continue, the harder it will be for them to maintain the payments if they're not generating sufficient cash. Ultimately, it will take a resumption of fairly normal economic activity to provide better conditions for companies to sustain and resume increasing their dividends. As a result, as grateful as I am to see those dividends continue and even increase a bit, I'm not expecting that trend to continue into the fall unless things open back up.

Discovery/HR Home Fool
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.