No one likes a dividend cut. And thanks to the pandemic, those cuts are becoming more prevalent with each quarter. As companies look to save cash, often the dividend and buyback programs are the first things to go. And in the current crisis, it’s often whole sectors that see their payouts slashed. Retailers are a prime example.
So, when mega-bank Wells Fargo (WFC) recently cut its dividend by 80%, bank investors were certainly put on notice.
Given how strong the group’s dividend growth and yields have been over the last few years, the question now is whether Wells Fargo’s dividend cut was an isolated incident or if the whole sector could see cuts in the months ahead.
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