05-22-2020, 05:36 AM
(05-21-2020, 10:59 PM)EricL Wrote:(05-21-2020, 09:54 PM)fenders53 Wrote: I think that might be the first aristocrat to suspend.
The third cut in my portfolio. Fortunately not a big yield, so the income is easily replaced.
I'm a bit surprised by the cut considering the relatively small payout and the amount of cash the company has on the balance sheet.
If discount retail ROST and TJX can't survive this, there won't be many in retail that can.
Both of them lack a presence for online sales, I suspect that was their downfall during the pandemic.
I think you are right on all counts. I've shared a few concerns here and on SA for about six weeks. Though not intentional, it's been an enormous transfer of revenue from small Biz to big box retail that happened to sell something deemed essential in their mix. Earnings reports validate that. I was also concerned that once the Div cuts started, it gets far more acceptable for others to cut even if it was possible to avoid it for now. I see signs of that, though not as bad as I feared so far.
Iowa was never completely locked-down, but mostly re-opened last week with few rules. I live in a touristy little town that always hops, and it appears about 10% of the small businesses are permanently closed. Many more are surely in trouble. I'm sure that will play out in many towns.
I think I had three Div cuts as well, but my rapid flight to quality in March spared me a few more.