Monday, May 1, 2017

TIS reduces dividend 100% --- New yield is 0%


Today TIS announced that it is suspending its dividend.

Since I currently own 237.8 shares my dividends will (well you know the math 100% reduction of any number is 0) drop by $332.90.

Ouch! That is going to leave a mark...It's probably a good time from a spec point of view to buy.

Forward dividends are around $8730.00, but not for long!!

2017 Dividend Raises/Cuts

OHI:  1.64% --- $3.20
KMB:  5.43% --- $8.03
GILD:  10.64% --- $10.49
CSCO:  11.54% --- $13.92
TROW:  5.56% --- $9.09
KO:  5.71% --- $20.96
QCOM:  7.5% --- $7.20
PG:  3.00% --- $2.43
OHI:  1.61% --- $6.46  (2nd Raise)
SO:  3.57% --- $7.41
UL:  12% --- $15.36
XOM:  2.67% --- $11.70
JNJ:  5.0% --- $8.67
TIS:  100% --- $332.9

Total yearly dividend decrease is $207.98

DEFY MEDIOCRITY


16 comments:

  1. The cut or elimination is something we all know can occur being dividend investors. Down but not out... Great attitude your forward dividends being down... but not for long :)

    ReplyDelete
    Replies
    1. DivHut,

      Business cycles happen and companies have to make adjustments. This is not ideal, but I get it. I don't plan to sell and I will make up the loss in the next few weeks.

      MDP

      Delete
  2. That stinks that they suspended the dividend I had a company do that last year of course it dropped big so I added to make up some loss then it eventually made a profit so I was able to sell it. Most likely when they suspend the dividend it will be a few years before it comes back if ever. I know it makes the growth guys happy. But us dividend guys it chaps us.

    ReplyDelete
    Replies
    1. D&h,

      Yeah. The stock will probably right itself now that it has more flexibility with its capital. I plan on keeping the shares for a while.

      MDP

      Delete
  3. Dam that sucks. Unfortunately it happens at least all those raises soften the blow a bit. You will be up again in no time

    ReplyDelete
    Replies
    1. Pci,

      That's why we diversify. I knew this was a spec position going in so no worries. If the price rebounds a bit I may sell, but for now I'm holding tight.

      MDP

      Delete
  4. I got lucky. I sold my TIS position last year. I was afraid that its dividend coverage ratio was too low.

    ReplyDelete
    Replies
    1. IH,

      Yeah when it was in the mid 30s I was thinking of selling as well. You never know. I just sold TUP last week after a big run up. Hopefully TIS bounces back up into the mid 20s. I may sell then.

      MDP

      Delete
  5. Ouch, that does suck that their dividend was cut hopefully they can pick i back up one day.

    ReplyDelete
    Replies
    1. BHL,

      I'm sure they will once business picks back up. It's a smart move on their part. Even a 50% dividend recover would be great in the future!

      MDP

      Delete
  6. Is TIS supposed to be a part of aristocrats? I don't see it any list. It's down -27.22% :-(. I hope it recovers it's value & dividends soon.

    ReplyDelete
    Replies
    1. dG,

      Definitely not! It is/was a high yielding small cap paper towel and tissue company. Hopefully earnings growth resumes and dividend reinstatement follows.

      MDP

      Delete
  7. I owned a small position (literally just 5 shares! - don't laugh) and sold when the dividend suspension announcement came out. It went down further after I sold. I used Robinhood to buy it so at least I didn't have any commission costs.

    ReplyDelete
    Replies
    1. JLH,

      I used to sell after dividend cuts as well, but I've noticed its usually better to wait a little while to get a better price point.

      MDP

      Delete
  8. Interesting, wonder why they cut the dividends. They do generate Ne Income and quite stable, but Free cash flow was heavy negative during few past years due to big capital spending. That what you get for dividend payout over 100% and heavy investment needs, that company did not managed to finance from borrowing. Actualy it was very odd that company did not borrowed to finance these investments... In this virtualy zero interest worlds that is a very very strange move :/

    ReplyDelete
    Replies
    1. 2035,

      I was wondering the same thing. I certainly can understand a cut in dividends in order to invest in other capital projects, but a complete elimination is over the top.

      MDP

      Delete