Coronavirus May Cause Some Companies to Halt or Slash Dividend Payments


Not only has coronavirus impacted peoples’ daily lives, it has also had a devastating effect on the global economy and the markets.  According to an article published by The Wall Street Journal (the “WSJ”) on March 19, 2020, before the coronavirus spread throughout the world, S&P Dow Jones Indices predicted that “dividend payouts for 2020 would top $500 billion to set a new record.”  Now, analysts are predicting that companies will consider slashing or suspending their dividend payouts to shareholders in order to preserve capital.  Shares of Ford Motor, Inc. fell 3.6% after announcing that it was suspending dividends on March 19, 2020.  According to the WSJ, analysts also predict that companies such as Boeing Co., Exxon Mobil Corp. and Chevron Corp. may soon follow suit.
 

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