EP #212 | Dividend recovery after cuts: Learning from Setbacks

In episode 212 of Dividend Talk, Explore examples of dividend recovery after cuts.

Key Highlights:

• News of the Week: Starbucks’ new CEO and his strategic approach. We discuss how he’s focusing on empowering baristas, simplifying the menu, and revitalizing Starbucks’ community atmosphere. Could this new leadership steer Starbucks toward long-term success?
• T. Rowe Price’s Outflows: We explore the ongoing challenges faced by T. Rowe Price with continued outflows and the pressure on their bottom line. With their strong balance sheet, can they weather the storm?
• Dividend recovery after cuts Lessons:
  • Royal Dutch Shell: From the harsh dividend cut during the 2020 oil crisis to its impressive bounce-back. We talk about how Shell’s strategy to reduce debt and invest in renewables helped turn things around.
  • General Electric (GE): A case of financial engineering gone wrong. We reflect on GE’s mismanagement, dividend slashes, and how even the best CEOs struggle to bring companies back from the brink.
  • LVMH: Even luxury giant LVMH had to cut dividends during COVID-19. However, their rapid recovery shows that quality companies often bounce back quicker than expected.
• Listener Questions: We wrap up by answering your questions on the market, including thoughts on Paychex’s expansion in Europe and our favorite consumer staples stocks.

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Tickers discussed in the show:

• Shell (SHEL)
• General Electric (GE)
• 3M (MMM)
• Starbucks (SBUX)
• T. Rowe Price (TROW)
• Philip Morris International (PM)
• Realty Income (O)
• Broadcom (AVGO)
• BASF (BASFY)
• Murray Income Trust (MUT.L)
• Royalty Pharma (RPRX)
• American Express (AXP)
• ExxonMobil (XOM)
• Chevron (CVX)
• Yancoal Australia (YAL.AX)
• Helia Group (HLI.AX)
• Coca-Cola (KO)
• Coca-Cola FEMSA (KOF)
• LVMH (MC.PA)
• L’Oréal (OR.PA)

That’s it from us. We hope you enjoyed the show and feel free to continue the conversation at our Facebook Group: