Thursday, February 26, 2015
Ouch!! ESV cuts dividend 80% --- New yield is 2.33%
Surprise, surprise. ESV announced they are reducing their quarterly dividend $.60 from $.75 to $.15 which is an 80% reduction. The new yield will now be 2.33%
Since I own 263.62 shares, my yearly dividends will decrease by $632.69.
Holy shit that is going to leave a mark! I just did a preliminary check on my forward dividends and they will drop from around $15,500 to $14,800 and some change.
Anyway here is a cut and paste statement from the company.
"To improve capital management flexibility in light of the market downturn, Ensco’s Board of Directors declared a $0.15 cash dividend per Class A ordinary share payable on 20 March 2015, a $0.60 reduction from the prior level. The ex-dividend date is expected to be 5 March 2015 with a record date of 9 March 2015."
In other news, WM is increasing its quarterly dividend by $.01 from $.375 to $.385 which is a 2.66% increase and will increase the yield to 2.82%. The record date is March 9th and the pay date is March 20th. I currently own 25.4 shares so my yearly dividend will increase by $1.02.
Obviously I have a lot of work to do in order to get my yearly dividends back on track. I don't plan on selling any ESV right now, as this probably is the bottom. A lot of times these type of events allow companies to regroup, clean up their house and begin marching forward again. We'll see. I don't need any tax losses right now, but if I do in the future I will use the opportunity to sell off part of my position.