Dividend increase and cut

Raising or lowering the dividend paid per share

In detail

An increase raises the dividend per share, a cut lowers it. Increases read as a sign of comfortable profit and cash, and companies that keep raising for years are described as serial raisers. Cuts usually signal weaker business and often bring selling from holders who owned the shares for the income. Paying nothing at all is called passing the dividend.

Example

Moving the dividend from $50 to $60 is an increase; moving it to $40 is a cut.

Related terms

Dividend Payout ratio Dividend yield

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For learning, not investment advice. Decisions are your own.