Current dividend yield is at 20 percent – it will be fun to watch the dividend drama!!
In Nov. 2019, Morgan Stanley retail analyst Kimberly Greenberger said: "With Macy's stock declining 50% in the last year, its dividend yield has nearly doubled to 10% – a clear indication the market views it as unsustainable. We expect Macy's may need to cut its dividend in the next two years if it's unable to stabilize cash flow."
Macy's shares closed Friday down 10%. The stock has fallen more than 60% this year. Macy's has a market cap of about $1.9 billion.
Macy's suspends dividend, draws $1.5B from credit line
Macy's (NYSE:M) suspends its regular quarterly dividend and draws down $1.5B under its credit facility as a proactive measure to provide the retailer with financial flexibility amid the continued spread and impact of Covid-19.
The company's previously announced dividend payment occurring on April 1, 2020 isn't affected by the suspension.
Additionally, Macy's is reviewing all non-essential operating expenses for opportunities to lower spending and is reducing its capital expenditures in 2020.
Withdraws 2020 sales and earnings guidance issued on Feb. 5 and confirmed on Feb. 25.
“We will continue to take the necessary actions to ensure that Macy’s, Inc. and our brands – Macy’s, Bloomingdale’s and Bluemercury – emerge from the other side of this crisis ready to serve our customers and welcome back our colleagues,” said Chairman and CEO Jeff Gennette.
Basically a collapse of M is looming over Dino Jeff’s head