Dividend Cuts

Interesting article from CNN Money on dividend cuts, here are the highlights:

• S&P estimates that dividend payments will fall by 22.6% this year, marking the largest decline since a 36.3% slide in 1938
• During the past six months, only 82 S&P 500 companies raised their dividends, compared with 143 firms in the year-earlier period, according to S&P data

Stocks bucking the trend:

• Abbott Labs (ABT) raised their dividend 11% in February
• McDonald's (MCD) raised their dividend 33% in November 2008
• Sysco (SYY) raised their dividend 9% in November 2008

Only four financial stocks were able to post a dividend increase so far this year:

• Chubb Corp (CB)
• HCP Inc (HCP)
• Hudson City Bancorp (HCBK)
• T.Rowe Price Group (TROW)

Another stock which didn't make the cut for this article is Cintas (CTAS) which raised its dividend by a penny in 2008 from 46 cents to 47 cents. The company has managed to increase dividends every year since they went public in 1983. Company reported earnings earlier this week, they have maintained their cash flow and been aggressive in reducing their debt levels.