Why I'm Not Worried About a Macy's, Inc. Dividend Cut

Last Friday, shares of Macy's (NYSE: M) were hit hard when rival department store operator J.C. Penney slashed its earnings guidance. Macy's stock has continued to decline this week, after Citigroup retail analyst Paul Lejuez slapped a "Sell" rating on the stock and warned that the company may cut its dividend.

Macy's share price has already plunged by more than 50% since last December. Its generous dividend -- which now yields a stunning 8% -- has been one of the few points of consolation for investors. A dividend cut could send more investors running for the exits.

Source: Fool.com