Excited to get paid your stock dividends this year? Well, hold your horses, companies are slashing dividend payouts.
Saddle up. Dividend payouts are expected to plunge 35% (or $497 billion) in 2020.
- If we get lucky and no more companies cut dividends, the decline will still be 15%.
- Another new record? 2020 is projected to beat 2008’s financial crisis that had a 30% slash to dividends.
Reserving cash. Since sales have plummeted (mostly) across the board, companies are temporarily getting rid of dividends to save money.
How does it affect my wallet?
When will my dividends come back? Some companies have only cut one dividend payment, while others have suspended dividends until 2022. It varies.
- What’s next? We can expect more companies to diminish dividend payments while economists scratch their heads, wondering when the economy will get back on its feet.
A golden opportunity for investors? Now may just be a golden opportunity to capitalize on these cuts. Check out what Jaspreet has to say here.
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