Alex Gorsky, Chairman and CEO of Johnson & Johnson, rings the opening bell to celebrate the 75th anniversary of his company’s listing at the New York Stock Exchange, September 17, 2019.
Brendan McDermid | Reuters
Johnson & Johnson surprised investors with a modest dividend increase of 6.3%, followed by Procter & Gamble, which raised its dividend 6%.
But don’t kid yourself: They are likely anomalies.
Dividends are under pressure because of a dramatic drop in cash flow used to fund them. There’s also concern that companies that take any government aid will be under pressure to suspend the dividend.
“Dividend pain has just begun,” analyst Charles Toole of Adviser Investments wrote in a recent…
Source cnbc.com