When you own a stock, a dividend cut is a painful thing. In my investing adventures over the last few years I have experienced many of them, two in the last month. I’m hoping to see a pattern to avoid such events in the future.
Symbol |
Proximate Cause |
Secondary Cause |
TLSYY |
Political factors |
|
TEVA |
Decline in generic medicine prices |
Too much debt |
COP |
Decline in price of oil |
|
SDRL |
Decline in price of oil |
Too much debt |
LINN |
Decline in price of oil |
Too much debt |
KMI |
Decline in price of oil |
Too much debt and too aggressive of a payout ratio in good times |
TAC |
Decline in price of electricity |
Lack of diversification in geography |
BBL |
Decline in price of commodities |
|
HCP |
Lack of diversity in tenants |
|
MOS |
Decline in price of fertilizer |
|
POT |
Decline in price of fertilizer |
|
RYN |
Accounting scandal & decline in price of goods |
|