If the declining value of stocks weren’t enough to damage and scare long term investors, now they’ve got to worry about a steep decline in dividend payouts.
Bloomberg: Dividend payments by companies in the Standard & Poor’s 500 Index may plunge 10 per cent this quarter, the biggest decline since 1958, as bank failures and slowing economic growth stifle payouts, S&P said.
The firm also cut its estimated 2008 dividend from all S&P 500 companies to $28.05 from $28.85, representing the slowest annual growth since 2001, according to a statement. Financial companies in the index reduced their payouts 35 times in 2008, almost triple the past five years combined, said Howard Silverblatt, the senior index analyst at S&P.
…Bank of America Corp., Lennar Corp. and Principal Financial Group Inc. cut their dividends by 50 per cent or more this month.
Via: The Big Picture
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