Chevron was the first major which in January suspended its stock buyback blaming the collapse in cash flows.
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a collapse in cash flow? LOL , WTF. Chevron spends all "cash flow" in all these different brands of coffee and tea.
No, the Dividend is not next. That won't go away, as it is for the shareholder. What's next is our Pension. It's likely that our private pension will be the next thing to take a hit. As Chevron reduces the pension payout or eliminates it, the company will shift the burden to the employee and the 401k plan. You can also expect the 8% match to be reduced. We may go back to a profit sharing plan, where when the company profits decline, so does your 401k match. Get ready for more changes. This is not the same Chevron anymore.
50 basis points is only .5%. That is very cheap money.
They floated 6 billion bond offering in February and was rated as a AA. The five-year notes yielding 50 basis points more than similar maturity Treasuries. In other ords they got cheap money. They did this to cover the dividend. Chevron's balance sheet is screwed screwed screwed. They will have a very hard time floating bonds to cover the div over the next few years. You do know that at $70 Chevron was expected to have a 13.6 Billion dollar cash flow short fall in 2016. Not sure what the projection for $49 is?
Who has heard the rumor about changing the travel policy so that only PSG 26+ flies business class on flights over 6 hours?
Listen to the upcoming earnings call on Friday, I'm sure the execs will cover this question extensively
No but the CIP is.
That'd be a death blow for the executives, it'll never happen, they would rather cut to the bone
Not likely. Watson would probably have to resign if he cut the dividend.