Dead Dividends Walking?

Slowly but surely, the financials are cutting their dividends. Ostensibly this is to preserve cash, but assuredly it is to try and keep their ratings up as the ratings agencies that led us down this road to hell overcompensate for their colossal failure to properly rate the toxic waste that poisoned us all by coming down hard on financials now…..

As dividends dissipate, and the Obama Budget raises tax rates on dividends and cap gains as early as this October, investors should take a look at their allocations. (I keep buying KO on dips, that dividend, like Pepsi is going up)

Wells Fargo is the latest, cutting their dividend 85%-

Wells Fargo on Friday cut its dividend 85 percent, a widely expected move that the fourth-largest U.S. bank said will save $5 billion a year.

The San Francisco-based bank also said it plans $2 billion of additional cost cuts in 2009, starting in the second quarter. It did not say where they will come from.

Dozens of lenders are reducing or eliminating dividends to preserve capital needed to cover rising credit losses.

The Street says COF is next on the block….

March 6, 2009. Tags: , , , , , , , , , , , , . Economy, Finance, Obama Administration, Taxes, Uncategorized, Wall St. 1 comment.

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