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With the Easy Money Gone, Executives Tighten Belts by Slashing Dividends

This article discusses the cost-savings zeal of corporate CEOs, companies cutting or pausing dividends, Intel Corp.'s dividend payment, and upcoming US investment-grade corporate bond issuance.

  • 17 companies in the Dow Jones US Total Stock Market Index cut their dividends this year.
  • Companies in the S&P 500 spent $564.6 billion on dividends in 2022, the most in data going back to 2000.
  • Intel Corp. slashed its dividend payment to the lowest level in 16 years.
  • Companies are taking painful steps for employees, such as streamlining operations and reducing headcount.
  • Dealers surveyed by Bloomberg News expect $40 billion of US investment-grade corporate bond issuance in the coming week.
With the Easy Money Gone, Executives Tighten Belts by Slashing Dividends
Cutting or pausing dividends is a step that corporate executives usually do everything possible to avoid as it can scare off investors and prompt them to move their capital elsewhere.

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