You Can't Control Dividend Cuts, but You Can Control What You Do About Them
It's been a fairly volatile and unusual first half of the year. You've seen a bull market for technology stocks -- the Nasdaq Composite is up more than 30% year to date -- yet it has been a difficult first half for other industries like banking, energy, insurance, and healthcare.
A still-sputtering economy has put pressures on many companies' balance sheets, and some have been forced to suspend their dividends or even cut them. If you invest in a stock that has cut its dividend or are concerned about a holding that may be heading that way, here are signs your next stock may offer a safer and more stable payout.
While it does not tell the whole story, a stock's dividend history is a good place to start in determining how stable a dividend is and how committed a company is to safely maintaining it. When examining dividend history, look at how many years in a row the company has increased its annual payout. Most of the popular dividend stock sites provide this information upfront.
Source Fool.com
