After The Dividend Cut (2007-2010): Focus On Financial Firms

About three months ago, I authored an article, "After the Dividend Cut", that analyzed the total return performance of consistent dividend growth stocks that had cut their dividend between 1999 and 2006. Though the data set was limited, the results were promising, as the group averaged an annualized return of 11% through 2007 versus 6% for the S&P (SPY) over the same time period. Through 2010, the results were even better, 10% vs. 3%, however, the data set did not include many financial firms, which caused much of the S&P's decline in recent years. In this article, I examine the consistent dividend growth firms that cut their dividend between 2007-2010; the list is at the end of this article and in the graphic below. I sourced the list from David Fish's CCC list, which tracks stocks that have cut or frozen their dividend, and from some prior research I did... Read more