2024-05-22 08:40:00 ET
Summary
- In early 2024, Close Brothers' share price collapsed, and shortly after that, it suspended its dividend.
- I don’t think I’ve made an obvious mistake by continuing to hold the shares today.
- The lesson I drew from Close Brothers was to not invest too heavily in any one industry.
If you aren’t familiar with Close Brothers ([[CBGPY]], [[CBGPF]]), it’s a FTSE 250 bank that was founded in 1878. It had (until recently) a long track record of progressive dividend growth, and I added it to the UK Dividend Stocks Portfolio in 2017.
Thanks to the pandemic and an ill-judged acquisition, the last few years haven’t exactly been smooth sailing for this company, but things have now gone from bad to worse. In early 2024, its share price collapsed, falling from £8 in January to £3 in February. Shortly after that, Close Brothers suspended its dividend.
When one of my holdings cuts or suspends its dividend, the first thing I’ll do is follow the immortal advice of the Hitchhiker’s Guide to the Galaxy: Don't panic. ...
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For further details see:
Close Brothers Has Suspended Its Dividend: Should I Sell?