Dividend Cuts: Before, During, and After

I was reviewing some of the high-profile dividend cuts in the past five years–Pitney Bowes, Conoco Phillips, BHP Billiton, Viacom, Wells Fargo, General Electric, Dow Chemical, American Express, U.S. Bancorp–and I was trying to figure out if there were some elements regarding investor sentiment that could aid us in drafting some common rules relating to the experience.

Here is what I found:

In the nine months preceding a dividend cut, these stocks saw their earnings decline by an average of 62.3%.

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