Dividend cuts can signal financial distress in a company from "summary" of The Little Book of Big Dividends by Charles B. Carlson
When a company decides to reduce or eliminate its dividend, it sends a strong signal to investors that all is not well. A dividend cut is often seen as a last resort, an admission by management that the company is facing financial difficulties. Investors who rely on dividends for income are particularly sensitive to any changes in a company's dividend policy. A dividend cut can cause these investors to panic and sell their shares, leading to a further decline in the stock price.
A company's dividend history is a reflection of its financial health. Companies that have a long track record of paying and increasing dividends are generally seen as stable and reliable. On the other hand, companies that have a history ...
Read More
Continue reading the Microbook on the Oter App. You can also listen to the highlights by choosing micro or macro audio option on the app. Download now to keep learning!
Now you can listen to your microbooks on-the-go. Download the Oter App on your mobile device and continue making progress towards your goals, no matter where you are.
