Dividend Decreases

This page gives you a list of the publicly-traded companies, exchange traded funds (ETFs) and real estate investment trusts (REITs) that have announced a decrease (or cut) in the amount of their dividend payments. Learn more about what it means when a company cuts its dividend.

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Country
Market Cap
Stock Type
Consensus Rating
CompanyAnnouncement DateAmountPrevious AmountDecrease AmountYieldEx-DatePayable Date
OFLX
Omega Flex
10/4/2022$0.32$3.50-90.86 %1.34%10/11/202210/24/2022
PFO
Flaherty & Crumrine Preferred Income Opportunity Fund
10/3/2022$0.0555$0.06-7.50 %7.5%11/21/202211/30/2022
GWRS
Global Water Resources
10/3/2022$0.0246$0.0490-49.84 %2.4%10/14/202210/31/2022
FTS
Fortis
9/30/2022$0.4116$0.4149-0.80 %4.4%11/16/202212/1/2022
GGAL
Grupo Financiero Galicia
9/30/2022$0.0895$0.1210-26.00 %5.17%9/30/202210/11/2022
JSML
Janus Henderson Small Cap Growth Alpha ETF
9/29/2022$0.04$0.0590-32.20 %0.36%9/30/202210/6/2022
NECB
Northeast Community Bancorp
9/29/2022$0.06$0.18-66.67 %1.94%10/13/202211/15/2022
SAND
Sandstorm Gold
9/29/2022$0.0146$0.0160-8.75 %1.1%10/17/202210/28/2022
BBVA
Banco Bilbao Vizcaya Argentaria
9/29/2022$0.1168$0.2611-55.27 %6.7%10/7/202210/26/2022
METC
Ramaco Resources
9/28/2022$0.1133$0.1134-0.09 %4.9%11/30/202212/15/2022
IVR
Invesco Mortgage Capital
9/28/2022$0.65$0.90-27.78 %32.7%10/7/202210/27/2022
CXSE
WisdomTree China ex-State-Owned Enterprises Fund
9/23/2022$0.11$0.23-52.17 %1.35%9/26/20229/29/2022
DGRE
WisdomTree Emerging Markets Quality Dividend Growth Fund
9/23/2022$0.30$0.51-41.18 %6.14%9/26/20229/29/2022
IFGL
iShares International Developed Real Estate ETF
9/23/2022$0.20$0.22-9.09 %4.21%9/26/20229/30/2022
BICK
First Trust BICK Index Fund
9/22/2022$0.0430$0.1010-57.43 %0.7%9/23/20229/30/2022
CARZ
First Trust S-Network Future Vehicles & Technology ETF
9/22/2022$0.1150$0.2270-49.34 %1.09%9/23/20229/30/2022
DVLU
First Trust Dorsey Wright Momentum & Value ETF
9/22/2022$0.0810$0.1210-33.06 %1.56%9/23/20229/30/2022
FDT
First Trust Developed Markets Ex-US AlphaDEX Fund
9/22/2022$0.1620$0.6580-75.38 %1.51%9/23/20229/30/2022
FEM
First Trust Emerging Markets AlphaDEX Fund
9/22/2022$0.5360$0.54-0.74 %11.02%9/23/20229/30/2022
FEMS
First Trust Emerging Markets Small Cap AlphaDEX Fund
9/22/2022$0.7510$0.8090-7.17 %8.93%9/23/20229/30/2022
FEMB
First Trust Emerging Markets Local Currency Bond ETF
9/22/2022$0.1350$0.14-3.57 %6.44%9/23/20229/30/2022
FEP
First Trust Europe AlphaDEX Fund
9/22/2022$0.1710$0.7680-77.73 %2.54%9/23/20229/30/2022
FEUZ
First Trust Eurozone AlphaDEX ETF
9/22/2022$0.1070$0.9560-88.81 %1.44%9/23/20229/30/2022
FGM
First Trust Germany AlphaDEX Fund
9/22/2022$0.4230$1.1450-63.06 %5.85%9/23/20229/30/2022
FICS
First Trust International Developed Capital Strength ETF
9/22/2022$0.1120$0.2940-61.90 %1.72%9/23/20229/30/2022
FLN
First Trust Latin America AlphaDEX Fund
9/22/2022$0.2310$0.5060-54.35 %5.67%9/23/20229/30/2022
FNY
First Trust Mid Cap Growth AlphaDEX Fund
9/22/2022$0.0230$0.07-67.14 %0.17%9/23/20229/30/2022
NXTG
First Trust IndXX NextG ETF
9/22/2022$0.4410$0.5530-20.25 %3.07%9/23/20229/30/2022
FPXI
First Trust International Equity Opportunities ETF
9/22/2022$0.0320$0.2880-88.89 %0.35%9/23/20229/30/2022
FSZ
First Trust Switzerland AlphaDEX Fund
9/22/2022$0.5090$1.32-61.44 %4.33%9/23/20229/30/2022
NFTY
First Trust India NIFTY 50 Equal Weight ETF
9/22/2022$0.2250$1.2950-82.63 %2.05%9/23/20229/30/2022
FTXN
First Trust Nasdaq Oil & Gas ETF
9/22/2022$0.14$0.1790-21.79 %2.38%9/23/20229/30/2022
FTXR
First Trust Nasdaq Transportation ETF
9/22/2022$0.0960$0.1410-31.91 %1.59%9/23/20229/30/2022
FV
First Trust Dorsey Wright Focus 5 ETF
9/22/2022$0.1510$0.1730-12.72 %1.49%9/23/20229/30/2022
FYX
First Trust Small Cap Core AlphaDEX Fund
9/22/2022$0.1480$0.1560-5.13 %0.8%9/23/20229/30/2022
GRID
First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund
9/22/2022$0.2710$0.4290-36.83 %1.4%9/23/20229/30/2022
HYLS
First Trust Tactical High Yield ETF
9/22/2022$0.2250$0.24-6.25 %6.93%9/23/20229/30/2022
IFV
First Trust Dorsey Wright International Focus 5 ETF
9/22/2022$0.1030$0.2380-56.72 %2.49%9/23/20229/30/2022
LEGR
First Trust Indxx Innovative Transaction & Process ETF
9/22/2022$0.2360$0.5120-53.91 %3.04%9/23/20229/30/2022
FTAG
First Trust Indxx Global Agriculture ETF
9/22/2022$0.0290$0.2520-88.49 %0.43%9/23/20229/30/2022
RDVY
First Trust Rising Dividend Achievers ETF
9/22/2022$0.2180$0.2220-1.80 %2.19%9/23/20229/30/2022
RFDI
First Trust RiverFront Dynamic Developed International ETF
9/22/2022$0.8670$0.9740-10.99 %7.43%9/23/20229/30/2022
RFEU
First Trust RiverFront Dynamic Europe ETF
9/22/2022$0.2420$1.12-78.39 %1.93%9/23/20229/30/2022
RNDM
First Trust Developed International Equity Select ETF
9/22/2022$0.1770$0.8010-77.90 %1.74%9/23/20229/30/2022
SDVY
First Trust SMID Cap Rising Dividend Achievers ETF
9/22/2022$0.1370$0.1550-11.61 %2.35%9/23/20229/30/2022
SKYY
First Trust Cloud Computing ETF
9/22/2022$0.0110$0.0360-69.44 %0.07%9/23/20229/30/2022
TDIV
First Trust NASDAQ Technology Dividend Index Fund
9/22/2022$0.2690$0.2930-8.19 %2.36%9/23/20229/30/2022
FID
First Trust S&P International Dividend Aristocrats Fund
9/22/2022$0.13$0.3060-57.52 %3.65%9/23/20229/30/2022
SCS
Steelcase
9/22/2022$0.10$0.1450-31.03 %4.8%10/4/202210/17/2022
BLCN
Siren Nasdaq NexGen Economy ETF
9/21/2022$0.0220$0.2080-89.42 %0.37%9/22/20229/26/2022
CIM
Chimera Investment
9/21/2022$0.23$0.33-30.30 %12.17%9/29/202210/31/2022
EQC
Equity Commonwealth
9/21/2022$1.00$3.50-71.43 %3.71%9/28/202210/18/2022
EQRR
ProShares Equities for Rising Rates ETF
9/20/2022$0.3190$0.3680-13.32 %2.74%9/21/20229/28/2022
SJT
San Juan Basin Royalty Trust
9/20/2022$0.1240$0.1830-32.24 %13.32%9/29/202210/17/2022
MTR
Mesa Royalty Trust
9/20/2022$0.0955$0.1497-36.20 %9.28%9/29/202210/31/2022
HT
Hersha Hospitality Trust
9/19/2022$0.05$0.28-82.14 %2.01%9/29/202210/17/2022
QQQ
Invesco QQQ Trust
9/16/2022$0.5190$0.5270-1.52 %0.73%9/19/202210/31/2022
BSJS
Invesco BulletShares 2028 High Yield Corporate Bond ETF
9/16/2022$0.1050$0.11-4.55 %6.0%9/19/20229/23/2022
BSMT
Invesco BulletShares 2029 Municipal Bond ETF
9/16/2022$0.0330$0.0340-2.94 %1.76%9/19/20229/23/2022
BSMM
Invesco BulletShares (R) 2022 Municipal Bond ETF
9/16/2022$0.0090$0.01-10.00 %0.43%9/19/20229/23/2022
BSMP
Invesco BulletShares (R) 2025 Municipal Bond ETF
9/16/2022$0.03$0.0310-3.23 %1.48%9/19/20229/23/2022
BSMS
Invesco BulletShares (R) 2028 Municipal Bond ETF
9/16/2022$0.0280$0.0290-3.45 %1.47%9/19/20229/23/2022
IHYF
Invesco High Yield Bond Factor ETF
9/16/2022$0.1140$0.1150-0.87 %6.39%9/19/20229/23/2022
IPKW
Invesco International BuyBack Achievers ETF
9/16/2022$0.2940$0.5870-49.91 %3.76%9/19/20229/23/2022
ISDX
Invesco RAFI Strategic Developed ex-US ETF
9/16/2022$0.2330$0.3190-26.96 %3.68%9/19/20229/23/2022
ISEM
Invesco RAFI Strategic Emerging Markets ETF
9/16/2022$0.5410$0.6670-18.89 %9.98%9/19/20229/23/2022
IUS
Invesco RAFI Strategic US ETF
9/16/2022$0.1560$0.1890-17.46 %1.74%9/19/20229/23/2022
KBWB
Invesco KBW Bank ETF
9/16/2022$0.3810$0.4450-14.38 %2.78%9/19/20229/23/2022
KBWY
Invesco KBW Premium Yield Equity REIT ETF
9/16/2022$0.1250$0.1390-10.07 %6.94%9/19/20229/23/2022
GRP.U
Granite Real Estate Inc. Staple
9/16/2022$0.1970$0.1999-1.45 %4.27%9/28/202210/14/2022
GRP.U
Granite Real Estate Inc. Staple
9/16/2022$0.1970$0.1999-1.45 %4.27%9/28/202210/14/2022
PFM
Invesco Dividend Achievers ETF
9/16/2022$0.1660$0.18-7.78 %1.9%9/19/20229/23/2022
PGJ
Invesco Golden Dragon China ETF
9/16/2022$0.07$0.0760-7.89 %0.99%9/19/20229/23/2022
PID
Invesco International Dividend Achievers ETF
9/16/2022$0.1690$0.1890-10.58 %4.04%9/19/20229/23/2022
PIO
Invesco Global Water ETF
9/16/2022$0.0910$0.1440-36.81 %1.18%9/19/20229/23/2022
PLW
Invesco 1-30 Laddered Treasury ETF
9/16/2022$0.05$0.0520-3.85 %2.01%9/19/20229/23/2022
PSL
Invesco DWA Consumer Staples Momentum ETF
9/16/2022$0.2450$0.3630-32.51 %1.23%9/19/20229/23/2022
QYLD
Global X NASDAQ 100 Covered Call ETF
9/16/2022$0.1650$0.1810-8.84 %12.1%9/19/20229/27/2022
QYLG
Global X Nasdaq 100 Covered Call & Growth ETF
9/16/2022$0.1180$0.1330-11.28 %6.03%9/19/20229/27/2022
PSCU
Invesco S&P SmallCap Utilities & Communication Services ETF
9/16/2022$0.2660$0.2730-2.56 %1.88%9/19/20229/23/2022
PSCD
Invesco S&P SmallCap Consumer Discretionary ETF
9/16/2022$0.3070$0.3180-3.46 %1.56%9/19/20229/23/2022
XHR
Xenia Hotels & Resorts
9/16/2022$0.10$0.2750-63.64 %2.46%9/29/202210/14/2022
TIMB
TIM
9/16/2022$0.0750$0.0785-4.39 %3.85%9/22/202211/7/2022
VIGI
Vanguard International Dividend Appreciation Index Fund
9/15/2022$0.1720$0.5850-70.60 %1.04%9/19/20229/22/2022
VXUS
Vanguard Total Intl Stock Idx Fund
9/15/2022$0.28$0.5890-52.46 %2.25%9/19/20229/22/2022
VYMI
Vanguard International High Dividend Yield Fund
9/15/2022$0.7060$1.1170-36.79 %4.98%9/19/20229/22/2022
BBDO
Banco Bradesco
9/14/2022$0.0020$0.0032-37.11 %0.8%10/4/202211/8/2022
ATAX
America First Multifamily Investors
9/14/2022$0.37$0.57-35.09 %7.7%9/29/202210/31/2022
AEF
Abrdn Emerging Markets Equity Income Fund
9/14/2022$0.10$0.11-9.09 %9.6%9/22/20229/30/2022
TIMB
TIM
9/13/2022$0.0750$0.0750-0.05 %9/22/20229/23/2022
DOOO
BRP
9/13/2022$0.1220$0.1240-1.61 %0.66%9/29/202210/14/2022
HNDL
Strategy Shares Nasdaq 7 Handl Index ETF
9/13/2022$0.1260$0.1290-2.33 %7.24%9/14/20229/16/2022
KSM
DWS Strategic Municipal Income Trust
9/13/2022$0.0337$0.04-15.75 %4.7%9/16/20229/30/2022
KTF
DWS Municipal Income Trust
9/13/2022$0.0320$0.0350-8.57 %4.3%9/16/20229/30/2022
CIL
VictoryShares International Volatility Wtd ETF
9/8/2022$0.0030$0.1070-97.20 %0.1%9/9/20229/13/2022
HMY
Harmony Gold Mining
9/8/2022$0.01$0.0260-61.55 %10/13/202210/24/2022
SWZ
The Swiss Helvetia Fund
9/8/2022$0.1665$0.1670-0.30 %8.8%9/20/20229/30/2022
DDF
Delaware Investments Dividend and Income Fund
9/8/2022$0.0580$0.0582-0.34 %9.2%9/22/20229/30/2022
ERIC
Telefonaktiebolaget LM Ericsson (publ)
9/7/2022$0.0760$0.0890-14.61 %9/29/20229/30/2022
ZTR
Virtus Total Return Fund
9/6/2022$0.08$0.1130-29.20 %12.58%9/9/20229/19/2022

The primary benefit of a dividend is the opportunity for investors to collect regular income. They can use their dividend payments as a source of extra income to meet their expenses. Or, in many cases, investors who don’t need the income from their dividends right away can reinvest their dividends to buy more shares of that particular equity. When they do, they benefit from the compounding effect.

With that in mind, it’s easy to understand why investors pay close attention to the amount of the divided (i.e. the dividend payout). At the very least, investors want to see a dividend payout that stays consistent over time. So when a company cuts its dividend it’s almost always a cause for concern.

Dividend cuts signal that a company is going through a period of financial difficulty. In this article, we’ll review why companies issue dividend cuts and why it’s always a signal for investors to proceed with caution before continuing to invest in that stock.

Why Does a Company Issue a Dividend Cut?

When a company issues a dividend cut it does so primarily for one of two reasons:

  • Declining earnings or increased debts – Although this should be concerning for investors, it may only reflect short-term economic conditions.
  • Reinvesting in the business - Sometimes a company will cut its dividend payment as part of a longer term strategy such as to prepare its balance sheet to absorb an acquisition or to buy back shares of its stock. Repurchasing shares is another way that companies attempt to build shareholder value.

A dividend is almost always paid from a company’s earnings (i.e. profit). The amount of the company’s dividend relative to its total earnings is called the payout ratio. Many companies that have a long track record of issuing dividends have stable, mature businesses with strong balance sheets. This makes their dividend sustainable even if they have a quarter or two of declining earnings. This is because the company has the flexibility to access capital from other sources to maintain its dividend level.

However, for other businesses, weaker earnings mean they have to reallocate money to shore up their balance sheet. That’s because if these companies try to access capital from anywhere other than earnings they can find themselves in a precarious financial position. In this case, a dividend cut may be the least bad option. And that’s a reason why it’s normally at the top of the list when it comes to actions a company will take when they face financial difficulties.

Is a Dividend Cut Always a Sell Signal?

If an investor needs the income from the dividend to meet current expenses, then a dividend cut is almost always a signal to sell. However, for investors who have a longer time horizon, it’s important to understand the exact reason for the dividend cut.

For example, sometimes the dividend cut is based on short-term macroeconomic conditions that are largely outside of the company’s control. For example, at the onset of the Covid-19 pandemic many companies particularly companies such as cruise lines and airlines issued dividend cuts in anticipation of historic demand destruction.

What is a Dividend Suspension?

Another action a company may take is to suspend its dividend altogether. This is a more drastic measure than a dividend cut because it means that instead of reducing the amount of its payout it will not be paying any dividend at all.

Dividend Yield vs. Dividend Payout

Dividend payout is the dollar amount per share that a company will pay shareholders on the payment date. Seeing this number remain stable or better yet increase should give investors more confidence that the company is on strong financial footing.

This is different from the dividend yield which is not a reliable indicator of how much money an investor will get from owning a dividend stock. 

Understanding the Payout Ratio

The dividend payout lets you calculate a company’s payout ratio. The formula for calculating the company’s payout ratio is dividends paid divided by net income.

Company’s normally calculate several different payout ratios. Some of the most common include:

  • Payout ratio based on trailing 12 months (TTM) of earnings
  • Payout ratio based on the current year’s earnings estimates
  • Payout ratio based on next year’s earnings estimates
  • Payout ratio based on cash flow

The Last Word on Dividend Cuts

Dividends are one way that a company uses to build shareholder equity. In most cases, once a company begins to issue a dividend they will make every effort to sustain the dividend. A dividend cut usually results in a company’s stock price dropping and can cast doubt on a company’s management. However, at times, the company has to cut its dividend in an effort to solidify the company’s balance sheet.

The important thing for investors to understand is why the company is issuing the dividend cut. Once they do, they will have a better understanding of whether they should continue to invest in the company.

Find out why slow and steady wins the race with DividendStocks.com.