While there are several positive attributes of cash dividends, they all carry a risk….and uncontrollable risk: The dividends may be reduced at any point in time or stop completely. You have no control over the amount or timing of any corporate dividend. Namely, we are referring to cash dividends from publicly traded companies listed on an Exchange, such as the New York Stock Exchange or the NYSE MKT (formally known as the American Stock Exchange), and NASDAQ.
Company Dividend History
There are companies that are known for paying cash dividends and have a history of successful distributions.
But that list is shrinking, and there is an increasing number of companies cutting back on cash dividends and stock dividends. The volatility of the US Markets is having a major impact on company and stock performance as well as the global economic, political, and social conditions. More pressures are being placed on companies to perform and meet or exceed shareholder expectations because everyone enjoys a “good return on investment.” The bottom line is that the balancing act of keeping shareholders happy with good returns, keeping enough capital on hand to run the business, and meet the ever-growing challenges of daily operations, a toll is being taken on cash dividends.
Company Dividend History
There are companies that are known for paying cash dividends and have a history of successful distributions.
But that list is shrinking, and there is an increasing number of companies cutting back on cash dividends and stock dividends. The volatility of the US Markets is having a major impact on company and stock performance as well as the global economic, political, and social conditions. More pressures are being placed on companies to perform and meet or exceed shareholder expectations because everyone enjoys a “good return on investment.” The bottom line is that the balancing act of keeping shareholders happy with good returns, keeping enough capital on hand to run the business, and meet the ever-growing challenges of daily operations, a toll is being taken on cash dividends.
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