Q: Hi,
On September 4 in an answer to Ritwick's question, you said: "BCE did not cut its dividend in other times of crisis...".
I thought BCE cut its dividend by about half in 2008. It did raise the dividend again to previous trend levels in the subsequent year(s).
I vaguely recall at the time that the 2008 dividend cut was quite a dramatic move for a "widows and orphans' stock and of course no one could predict at the time the dividend would be reinstated the next year.
Cheers, Michael
On September 4 in an answer to Ritwick's question, you said: "BCE did not cut its dividend in other times of crisis...".
I thought BCE cut its dividend by about half in 2008. It did raise the dividend again to previous trend levels in the subsequent year(s).
I vaguely recall at the time that the 2008 dividend cut was quite a dramatic move for a "widows and orphans' stock and of course no one could predict at the time the dividend would be reinstated the next year.
Cheers, Michael
5i Research Answer:
We are both right. BCE actually eliminated its dividend in 2008, but it was an unusual case, and not related in any way to a 'crisis' or fundamentals. BCE was to be privatized (taken over) and as part of the deal the dividend was eliminated as part of the takeover. However, the deal failed, and the dividend was reinstated at the prior rate.