The implied dividends measure the options market view on how much companies will pay going forward. Embedded in options prices are a portion of forecast dividends traders think will be paid.

When the implied dividend falls to low levels, this behavior warns investors that the dividend level may fall.

Here's how the ORATS implied dividends watch looked last week:

null

 

Wynn Resorts (WYNN) had an annualized dividend of $4.00 but their implied dividend was zero. WYNN subsequently suspended payment of their dividend. MGM cut its June dividend to 0.0025.

Disney announced it won't pay a dividend for the first half of its current fiscal year.

Estee Lauder announced it would be suspending its dividend for the next quarter. The dividend would have been paid in June.

TJX very quietly suspended its dividend for the near future. They put the suspend information in their annual report filing buried pretty deeply.

Dick's Sporting Goods announced it would be temporarily suspending its dividend.

To preserve liquidity, CAKE has suspended its dividend and stopped buying back stock.

Here's what the ORATS implied dividend suspension watch file looks like now:

null

 

Many of these stocks could be next to cut.

Grainger (GWW) reported last Thursday and said it is suspending its financial guidance for the full year 2020 and pausing share repurchases given the uncertainties surrounding the ongoing coronavirus (COVID-19) pandemic. Is its dividend next?

 

https://blog.orats.com/risky-dividends-kohls-suspends-dividend-after-raising-it-in-march-others-will-follow

 

 

related posts

Risky Dividends: Kohl's Suspends Dividend After Raising It In March, Others Will Follow
May
08
Dividends

Risky Dividends: Kohl's Suspends Dividend After Raising It In March, Others Will Follow

Why would Kohl's (KSS) slash its dividend after raising it just two months ago, and why would...

Read Post
Royal Dutch Shell Cuts Its Dividend For The First time Since 1945
Apr
30
Dividends

Royal Dutch Shell Cuts Its Dividend For The First time Since 1945

Royal Dutch Shell cut its dividend 66% to $0.16 from $0.47 this morning. This is the first time...

Read Post

We're here, if you need us.

Still curious how we can help you?




LET'S CHAT