Just quick update on the rolling three month summation of dividend cuts for companies in the S&P 1500. The the number of companies cutting dividends remains elevated, albeit down from higher levels earlier in 2013 and later 2012. Lets look at the chart below.
Despite the decline in the number of companies cutting dividends, the amount remains elevated at 55. Generally speaking, rolling three month dividend cuts above 50 in any period tend to suggest recessionary conditions. This data point, albeit crude, confirms with other indicators that suggest a slowing economic environment and increased recessionary risks. How about that taper?
Despite the decline in the number of companies cutting dividends, the amount remains elevated at 55. Generally speaking, rolling three month dividend cuts above 50 in any period tend to suggest recessionary conditions. This data point, albeit crude, confirms with other indicators that suggest a slowing economic environment and increased recessionary risks. How about that taper?
No comments:
Post a Comment