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:

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