LUMN - What Investors Need To Know About Dividend Cuts

2024-04-17 07:15:00 ET

Summary

• Dividend investing provides a growing passive income stream and can make investors agnostic to stock market conditions.
• Dividend cuts significantly hurt investors by reducing passive income and indicating potential underlying issues with the company.
• We discuss the causes of dividend cuts, the early warning signs to watch out for, and how to respond prudently when a dividend cut takes place.

One of the biggest appeals of dividend investing is that it creates a growing passive income stream that can fund living expenses without forcing you to sell shares of stock at potentially inopportune times. As a result, it makes you relatively agnostic to stock market conditions and, in fact, can even make you happy when stock prices drop because it makes the yield on cost of new purchases higher....

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