Many long-term investors subscribe to the rule that all respective stocks within a given portfolio must pay an attractive dividend. This is especially true for dividend growth investors as consistent growing dividends over an annual basis are essentially the core of this strategy. Because of this, many investors are ruthless in liquidating positions when dividends are cut aggressively.
In the current environment, across a plethora of companies, significant dividend cuts have become the norm. What we need to remember here, however, is that many companies have cut their pay-outs in order to protect themselves against