Quote:
Originally Posted by CaptainYooh
All Canadian bank and REIT dividends look huge right now but it's unrealistic to expect them to be paid-out at that levels. I've no doubts, they will have to be adjusted down significantly to historically supportable levels (3-4% for Tier-1 banks and 4-8% for REITs).
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It will depend on how long this lasts and how much earnings are affected. Most companies will do whatever they can to maintain their dividends, and the banks are definitely in that group.
Far more likely, IMO, that dividend yields return to normal due to increasing stock prices reflating than due to cuts in actual dividends.
(at least for the banks - other companies and industries are a different ballgame)