Death knell for dividends as firms try to save cash amid Covid-19 crisis

Irish Times | Mar 27, 2020 at 5:15 AM
  • Having triggered the wiping of more than $25 trillion off the value of public companies globally in the past five weeks as it wreaks havoc on health systems and economies, Covid-19 is now attacking another investor staple: the corporate dividend.
  • Others, such as housebuilder Cairn Homes and Ryanair, have suspended share buyback programmes designed to boost their earnings-per-share figures and stock price.
  • Many of the companies lining up for US government bailouts and assistance – including aircraft maker Boeing, the airline industry in general and hotel groups – spent billions on buybacks in recent years, turbocharged by tax cuts brought in by president Donald Trump’s administration in late 2017.