Bank of America Dividend Cut
Source: http://blogs.moneyandmarkets.com/blog/the-dividend-superstars-blog/0/0/bank-of-america-dividend-cutPosted on Wednesday, October 8th, 2008 | In Stocks to Watch
I am as disappointed to see Bank of America’s dividend cut as anyone. The stock is one of the only financial positions in the Dividend Superstars portfolio, and I thought the company would honor its promise to keep its payout at least stable through the current crisis.
I was wrong. Circumstances — which sure include the pending MER acquisition and the ongoing credit crunch — forced a 50% reduction in the company’s dividend.
For some perspective, this marks the first year since 1978 that BAC didn’t INCREASE its payment.
The company was also the second-largest payer in the S&P 500. After the cut, it remains the 5th largest payer.
I don’t think it’s a good idea to sell the shares into weakness on the news. But I will be providing a complete update on the company, and what I recommend doing given the latest news, in the next issue of Dividend Superstars.
Last 5 posts by Nilus Mattive
- GM’s Bankruptcy and Changes to the Dow! - June 2nd, 2009
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- New Law Lets You Skip Required Minimum Distributions (RMDs) - January 5th, 2009
- A thoughts for the start of 2009 - January 5th, 2009
 About Nilus Mattive (http://blogs.moneyandmarkets.com/blog/the-dividend-superstars-blog)
Nilus Mattive, a financial analyst at Weiss Research, is the editor of Dividend Superstars, a monthly publication and is also the editor of the company’s daily e-letter, Money and Markets. Formerly a senior editor of Standard & Poor’s The Outlook, the oldest continuously published investment newsletter in the country, he has written for a number of investment websites, including BusinessWeek and Individual Investor. Mr. Mattive is the author of The Standard & Poor’s Guide for the New Investor (McGraw-Hill, 2004) and has appeared on the popular investment radio show, Traders Nation, to discuss his views on personal finance. Mr. Mattive graduated cum laude from the University of Scranton. |
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