It’s a pretty uncertain time. And while I used to be more black-and-white in my thinking, I’m less certain as I grow older. Some companies are cutting dividends, others aren’t. Which companies are doing the right thing?
That’s why, when I saw that Disney cut their dividend I was actually glad. I don’t hold Disney, but I hope that they’re signaling values. I don’t believe that they’re signaling distress. I hope that they’re saying… we are not going to continue as-is with our investors, when our employees and customers are suffering.
In truth “in these uncertain times” anywhere you can find a bit extra certainty brings comfort. The dividend aristocrats do that for me. I haven’t had any dividend cuts this time around (in fact, I’ve gotten a raise when Apple, not an aristocrat but has a very strong balance sheet and cash flow, reported earnings last week).