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Today's extra news:
Most Dividends Cut Since 1950s as Banks Conserve Cash
Nov. 26 (Bloomberg) -- Stock dividends are disappearing at the fastest rate in 50 years as the worsening recession forces U.S. companies to conserve cash.
Citigroup Inc., Genworth Financial Inc. and New York Times Co. are leading 91 companies listed on the biggest U.S. exchanges in reducing or suspending payouts to shareholders this month, the most since May 1958, when 113 companies slashed dividends, according to data compiled by Standard & Poor’s. The reductions in November exceeded the 81 dividend cuts in October and 60 in September.
My comments: Recently a number of observers have been saying that stocks are a really good deal right now because their dividend yield is higher than the yield on Treasury bonds. I never bought into this because I knew that dividends were going to fall over time. But at the fastest rate in over 50 years? That took me by surprise. So much for those "fat yields" on stocks. They only existed in the rear view mirror apparently.
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