http://seekingalpha.com/article/3437946-digging-further-into-chevron-preemptive-dividend-cut-likely
4 replies (most recent on top)
Issuing more bonds/debt to cover the dividend is no more than digging a deeper hole. Best cut the dividend sufficiently now and "take the hit" to our stock price rather than fooling oneself into believing that all this will pass soon. I'm sure John Watson doesn't want to cut the dividend under his watch and break a streak of 25+ years. But he must put aside his pride and his legacy, for his first obligation is the fiduciary responsibility to do what is best for the company (not only the shareholders). Tough choices are made by the best CEOs. I'm awaiting the cut to be announced in the 3Q-2015 earnings conference call by Watson himself.
Management kept increasing dividend by 7-10% on average over the past 10 years leading to an unsustainable high expense. After 27 years of increasing the dividend, I hope they make the decision to finally cut it. Although it could be worse - they might issue more bonds/debt to cover the dividend !
I agree....also seeking Al(ha is a money making rag. They advertise all scenarios to peak interest and buy. We know the best better than all the rest! We are living it....piss poor leadership! Stock will tank on next quarterly earning and cash flow statement.
Dividend cut will take the stock into the 60s. If you own the stock it will be dead money.