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: 1.64% --- $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
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 :)
ReplyDeleteDivHut,
DeleteBusiness 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
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.
ReplyDeleteD&h,
DeleteYeah. 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
Dam that sucks. Unfortunately it happens at least all those raises soften the blow a bit. You will be up again in no time
ReplyDeletePci,
DeleteThat'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
I got lucky. I sold my TIS position last year. I was afraid that its dividend coverage ratio was too low.
ReplyDeleteIH,
DeleteYeah 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
Ouch, that does suck that their dividend was cut hopefully they can pick i back up one day.
ReplyDeleteBHL,
DeleteI'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
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.
ReplyDeletedG,
DeleteDefinitely not! It is/was a high yielding small cap paper towel and tissue company. Hopefully earnings growth resumes and dividend reinstatement follows.
MDP
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.
ReplyDeleteJLH,
DeleteI 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
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 :/
ReplyDelete2035,
DeleteI 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
What happened with this company that it had to suspend its dividend? This thing makes toilet paper and paper towels! How does it have a debt load larger than its market cap!?
ReplyDeleteSincerely,
ARB--Angry Retail Banker