2020 has not been kind to dividends.
Thanks to the coronavirus, General Motors (GM) just cut its quarterly cash dividend and its share buyback program. All as the virus does severe damage to global auto sales. “We continue to enhance our liquidity to help navigate the uncertainties in the global market created by this pandemic,” said GM Chief Financial Officer Dhivya Suryadevara, as quoted by Reuters.
Unfortunately, GM is part of a long line of other cuts.
Ford Motor (F) cut its dividend, which could save the company about $2.4 billion annually, notes The Wall Street Journal. Carnival (CCL) cut its dividend and cut capital expenditures and operating expenses, as noted by Barron’s.
Estee Lauder (EL) cut executive salaries, suspended dividends, issued notes and borrowed the full amount under its $1.5 billion revolving credit facility, as the cosmetics giant reacts to the coronavirus pandemic, says The Street.
Hilton Worldwide (HLT) suspended its dividends and buybacks, too. Hilton explained that “[w]ith travel at a virtual standstill, operations have been suspended across many managed and franchised hotels, and those hotels that remain open have reduced services for guests because of decreased occupancy levels.”