Re: Buying stocks with high dividends?
[ QUOTE ]
They won't cut dividends unless they have to, because they know they are dead meat if they do.
[/ QUOTE ]
Not necessarily. I've seen divi cuts received well in the past. GM comes to mind as one of many examples. Also too, divy cuts are very often anticipated. Surprise divy cuts aren't received so well. Don't know what the sentiment is on C.
A quick note, in theory stocks that pay dividends aren't any more valuable than stocks that don't. The decision to pay a dividend and how much to pay is not an easy question for companys to answer. Some stocks are required to pay dividends such as REITs in order to maintain their tax status.
|