The COVID-19 pandemic has created a challenging environment for dividend growth investors. More than 600 companies announced dividend cuts or suspensions during the second quarter of 2020, even companies with long histories of annual dividend increases.
My DivGro portfolio suffered several dividend cuts and suspensions. To date, I've experienced three cuts and three suspensions, reducing my projected annual dividend income by about $1,832. And another planned reduction will reduce my projected annual dividend income to about $1,959 by year-end.
My general approach with dividend cuts or suspensions is to close such positions. However, I've decided