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NEW YORK — Standard & Poor’s said Tuesday that a record number of companies cut their dividend during the first quarter, while a record low announced plans to increase dividend payments.
It was the first time since S&P started tracking dividends in 1955 that dividend decreases outpaced dividend increases. Total dividend payments during the quarter declined by $77 billion, S&P said.
“Many companies were paying dividends on unrealistic earnings expectations,” said Don Wordell, portfolio manager of the RidgeWorth Mid-Cap Value Equity fund.
The ongoing credit crisis and recession have been the primary reasons given by many companies for cutting dividends in recent quarters. The Associated Press
