Quote:
Originally Posted by Enoch Root
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)
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As one example, CIBC's dividend yield at the nadir of the 2008-09 crisis was pretty much exactly what it is right now. There were no cuts then, and it would take something pretty spectacular for a big 5 bank to reduce its dividend now.