Why you can't rely on your dividends
Many income investors will be tested financially like never before as savings rates and dividends fall.
Dividend deferrals, cuts or suspensions are a likely response to plunging corporate revenue. Illustration: Karl Hilzinger
Investors watching their share portfolio tank as the COVID-19 panic escalates should brace for widespread dividend cuts as corporate profits tumble.
With economic recession seemingly inevitable, more companies are withdrawing their revenue and earnings guidance given the uncertainty of a once-in-100-year pandemic that is devastating the global economy and financial markets.
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