Soon NM will be publicizing their dividend for the year. Guesses on how low it will be?
8 replies (most recent on top)
Guess what. Expanded NY office. More wasted money and no tech hub for Milwaukee. https://www.bizjournals.com/milwaukee/news/2019/10/08/northwestern-mutual-selects-new-larger-office.html
Yes, Schlifske and the board all need to go. NM already has the lowest dividend rate of the top 6 whole life companies, so I’m not sure how much damage would happen if the rate has even a substantial decline. Some of it may depend on what the other companies do, but Mass Mutual, Penn Mutual, and New York Life are all still over 6 percent. NM is very focused on the total dividend payout, and I would think they’ll avoid anything that will seriously damage that reputation. However, I recently spoke with friends in IT who moved onto different companies, and they all said NM has a lot of problems right now.
Yes, they waited too long in 2007-2008 to drop rates and then to raise them again. And now, rates are dropping again. Keep in mind, the co's only concern is 'appearance' not truth or reality. And, with the press on their side it is only those from within that can speak to the truth. NM in the past has hired what is termed as the 'Stepford Wife' mentality. That isn't going to fly anymore. And, we can't place all the blame on Schlifske............the NM Board should also be held accountable.
Yes low interest rates impact everyone, but every company needs to predict and plan accordingly. It seems to me that NM leadership did not plan accordingly or react soon enough to low rates. Rates bottomed out in 2008 and NM leadership waited almost 10 years (2017) before adjusting.
Can’t speak to any of the any of the other issues that NM has but the way the dividend rate is calculated is different from company to company and can’t be compared apples to apples. Also Schlifske isn’t solely responsible, it is the board of directors. Sustained low interest rates effect everyone, not just NM.
The Milwaukee media wants their readers to be fooled by all things NM. The MJ doesn't even write their own articles. They basically print news releases NM writes. Why would they want anyone in Milwaukee knowing about how many employees have been let go, the waste of money buying LearnVest was, their practice of ageism, keeping the LV office in NY when they say they want Milwaukee to be a technology hub?
It’s also very curious how the Milwaukee media just ignores the facts regarding the dividend rate. The only thing ever mentioned is how much the total payout is, which is a skewed number. The rate is a much better measure of the individual experience.
Schlifske was the first of the larger mutuals to go below 5 percent last year to 4.9, then he went to 5 percent this year. Yep, it's always very interesting around this time of year to see how Schlifske can continue to screw up this company. https://mericleco.com/2018-whole-life-insurance-dividend-rate-announcements/