Dividend Machine Dividend Cuts

I was going to write an article on dividend cuts in my model portfolios but I could find only two: Pitney Bowes (NYSE: PBI) and Landauer (NYSE: LDR).
I picked each of these stocks as I compiled the 2011 portfolio. I have compiled five portfolios so far that include 95 stocks. Two out of 95 symbols profiled so far with a dividend cut makes for a boring article. I will look next at dividend growth rates, but for the purpose of reviewing failures, let's take a look at PBI and LDR.
Pitney Bowes
Since my model portfolios are long only so that I can measure this strategy, I cannot "sell" PBI. I do not reinvest dividends as these portfolios are designed to deliver income that you spend. I don't include the dividend income in the gain because the income is for spending. I follow the capital gains and losses as well as dividend yield and dividend growth.
It is of some interest to look at our failures especially when you have to hold them. Here are the Dividend Fundamentals of this failed pick.

I am encouraged by the fact that earnings per share (EPS) exceed dividends paid out. I am discouraged by the debt to equity ratio (D/E). One can see that while PBI cut the dividend in half and took on a lot of debt to survive, it continued to pay something.
Since the dividends paid out are only 35% of earnings, one could conclude that PBI is trying to pay off their massive debt.
The 2011 portfolio holds a very shaky but improving stock in... Read more