WES - Don't Fall for These 6 Dividend Stocks: Cuts Are Coming
The COVID-19 outbreak is grinding the global economy to a halt. That's causing oil demand to fall off a cliff just when supplies are gushing because of the collapse of a market support agreement between OPEC and Russia. Those dual shockwaves have sent crude oil prices crashing to their lowest levels in decades.
The massive decline in oil is forcing energy companies to take drastic action to stay afloat. Most are cutting capital spending, while others are cutting even deeper by slashing dividend payments. Investors expect more dividend reduction announcements in the coming weeks as companies adjust to these turbulent market conditions. Among those likely to reduce their payouts are financially weaker master limited partnerships (MLPs) that focus on gathering and processing oil and gas.
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