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Kiss Those Dividends Goodbye
naked capitalism — ... or increase. They are being cut, and with lousy to no profits in the offing, it's reasonable to assume that in aggregate, dividend payments will continue to shrink. Right now, the cuts are concentrated in financial firms (why pay dividends when you are broke and can turn to the Treasury and Fed for a helping hand?). However, as the real economy starts to feel more of the effects of the slowdown, those companies will feel pressured to conserve cash by reducing dividends. From Bloomberg: Stock dividends are disappearing at the fastest rate in 50 years as the ...

Reading: Refis, Volcker, Economists, etc.
Paul Kedrosky's Infectious Greed — Some evening/morning reading worth scanning: Why almost no-one got the current crisis. And why a few did. (FT) Dividend cuts fastest since 1950s in U.S. (Bloomberg) Fed risks spitting in wind with new bailout package (Bloomberg) There is no financial services sector. What do we do now? (FT) Volcker tapped for Obama economic advisory role (WSJ) Fed aid sets off a rush to refinance (WSJ) Why fairly valued stock markets are an opportunity (FT) ...

Wednesday morning links
The Mess That Greenspan Made — TOP STORIES China cuts key interest rate - CNN/Money Three new reports reveal battered economy - AP Fed's $800 billion package aims to unlock lending - USA Today Obama picks Volcker to head economic group - CNN/Money Banks lining up to sell FDIC-backed debt - MarketWatch Beyond the Ivied Halls, Endowments Suffer - NY Times Russian expert: U.S. headed for collapse - UPI Keynes on Steroids - Washington Post MARKETS/INVESTING Oil steady near $51 - CNN/Money Gold Falls in London as Stronger Dollar Reduces Demand - ...

The incredible disappearing dividend
BloggingStocks — Filed under: Market matters For decades now, when there has been a stock market downturn, shares may have lost their value, but investors could always rely on big companies to pay dividend to get some return. Not anymore, and that makes life for the individual investor even harder. According to Bloomberg, "Stock dividends are disappearing at the fastest rate in 50 years as the worsening recession forces U.S. companies to conserve cash." The credit crisis makes it hard for firms to borrow, so they keep what they have on hand. Banks, traditional big yield stocks, may not get their balance sheets in shape for the rest of the ...

Pre-Thanksgiving Randomosity
The Learning Curve by Muckdog — Whoa Fonzie (not pictured), did you see that the dividend cuts are the fastest since the 1950's? “Until we start to see the economy turn around, you have to assume broadly that dividends could be at risk in many sectors of the economy, especially among financials,” said Fritz Meyer, the Denver-based senior market strategist at Invesco Aim Advisors Inc. And those were the Happy Days? President-elect Barack Obama has another economic press conference on Wednesday.  Seems like the guy is on TV everyday, like a soap opera star or something.  As the Economy Turns. More iPhone stuff?  Downloaded ...