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Firms that cut dividends can be attractive income investments

Trying to maintain the payments at an unsustainably high level can be much worse in the long-term.

Published Fri, Apr 27, 2018 · 09:50 PM

    DeeperDive is a beta AI feature. Refer to full articles for the facts.

    IT may seem counter-intuitive but companies that have cut their dividends can be good sources of future income.

    An important part of income investing is receiving dividends. A dividend is the portion of a company's profits that is returned to shareholders.

    The payment of dividends is an incentive to own shares in stable companies.

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