12 Biggest Dividend Cuts and Suspensions of 2023

Published on October 12, 2023 at 5:25 pm by Vardah Gill in Dividend Stocks, Hedge Funds, News

In this article, we discuss 12 biggest dividend cuts and suspensions of 2023. You can skip our detailed analysis of dividend stocks and their performance this year, and go directly to read 5 Biggest Dividend Cuts and Suspensions of 2023.

It’s not uncommon for companies to reduce or even suspend dividends during troubled times. For example, Unilever PLC (NYSE:UL) reduced dividends during the 2008 financial crisis and in 2015, but its trend has been upward over the long term. A dividend cut alone shouldn’t be an immediate signal to sell your shares in a company. It’s important to investigate and understand why the company reduced its dividends.

Dividend payouts have remained stable this year as many companies around the world held their dividends steady. According to Janus Henderson, global dividends did better than expected in the second quarter. The total payout hit a new record of $568.1 billion, up 4.9% from the previous year. The real growth was 6.3% excluding special dividends, which was faster than the first quarter. Europe’s strong dividend performance played a significant role in this.

The report also mentioned that the dividend growth in the US slowed down in the second quarter. The total dividend payment of $148.0 billion increased by a modest 2.6% compared to the previous year. When considering the special, one-off dividends, the actual growth rate was 4.6%. This marks the sixth quarter in a row where growth has been decreasing. Some top companies like Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) and Intel Corporation (NASDAQ:INTC) reduced their dividends this year. In this article, we will further discuss some of the recent dividend cuts announced by companies this year.

Photo by Annie Spratt on Unsplash

Our Methodology:

The following dividend stocks have cut their dividend payments in 2023 due to the current market conditions and other factors. The stocks are ranked according to the number of hedge fund investors having stakes in them at the end of Q2 2023.

12. ZIM Integrated Shipping Services Ltd. (NYSE:ZIM)

Number of Hedge Fund Holders: 13

ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) is an Israeli shipping company that specializes in container shipping and logistics services. The company also operates a global network of shipping routes and services. The company last paid dividends in the March quarter and announced the suspension of its payouts in August due to its Q2 losses. However, the company continues to stick to its dividend policy, which means it would distribute 30-50% of its yearly profit as dividends to its shareholders whenever it reinstates its dividends.

In the second quarter of 2023, ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) reported revenue of $1.31 billion, which fell by 61.8% from the same period last year. The company’s operating cash flow for the quarter came in at $347 million and its free cash flow amounted to $321 million.

At the end of Q2 2023, 13 hedge funds in Insider Monkey’s database reported having stakes in ZIM Integrated Shipping Services Ltd. (NYSE:ZIM), compared with 17 in the previous quarter. The collective value of these stakes is over $41 million. With over 1.6 million shares, Citadel Investment Group was the company’s largest stakeholder in Q2.

11. Big Lots, Inc. (NYSE:BIG)

Number of Hedge Fund Holders: 15

Big Lots, Inc. (NYSE:BIG) is a retail company that operates discount stores, selling a wide variety of merchandise, including closeout and overstocked products. The company’s stores offer a broad range of products across various categories.

On May 26, Big Lots, Inc. (NYSE:BIG) announced the suspension of its dividends due to macroeconomic challenges. However, the company believes that the challenges it’s facing will eventually go away, and when they do, the business will get a significant boost. Before this recent dividend cut, the company paid regular dividends to shareholders for the past 9 years.

In the second quarter of 2023, Big Lots, Inc. (NYSE:BIG) posted revenue of $1.14 billion, down 15.6% from the same period last year. The company ended the quarter with nearly $46 million available in cash and cash equivalents.

As of the close of Q2 2023, 15 hedge funds in Insider Monkey’s database owned stakes in Big Lots, Inc. (NYSE:BIG), compared with 17 in the previous quarter. The overall value of these stakes is over $12.6 million. Among these hedge funds, Millennium Management was the company’s leading stakeholder in Q2.

10. Hawaiian Electric Industries, Inc. (NYSE:HE)

Number of Hedge Fund Holders: 18

Hawaiian Electric Industries, Inc. (NYSE:HE) is a holding company that primarily operates in the electric utility industry in the state of Hawaii. The company’s recent dividend cut would start in the third quarter and it also introduced additional steps to improve its financial health after facing questions about its involvement in the Maui wildfires. Prior to this break, the company had increased its dividends every year for the past five years.

Hawaiian Electric Industries, Inc. (NYSE:HE) generated $895.6 million in revenues in the second quarter of 2023, which was in line with its revenue from the same period last year. The company’s net income for the quarter came in at $45.3 million.

The number of hedge funds tracked by Insider Monkey owning stakes in Hawaiian Electric Industries, Inc. (NYSE:HE) grew to 18 in the second quarter of 2023, from 15 in the previous quarter. The overall value of these stakes is roughly $50 million.

9. Brandywine Realty Trust (NYSE:BDN)

Number of Hedge Fund Holders: 19

Brandywine Realty Trust (NYSE:BDN) is an American real estate investment trust company that primarily focuses on the acquisition, development, and management of commercial real estate properties. The company slashed its quarterly dividend by 21.1% On September 20, which places it on our list of stocks with recent dividend cuts. It now pays a quarterly dividend of $0.15 per share and has a dividend yield of 14.35%, as of October 11.

In the second quarter of 2023, Brandywine Realty Trust (NYSE:BDN) reported revenue of $125.8 million, up by 1.5% from the same period last year. At the end of June 2023, the company had over $32.1 million available in cash and cash equivalents.

As of the end of Q2 2023, 19 hedge funds in Insider Monkey’s database reported owning stakes in Brandywine Realty Trust (NYSE:BDN), down from 23 a quarter earlier. The total value of these stakes is over $42.6 million.

8. Healthcare Services Group, Inc. (NASDAQ:HCSG)

Number of Hedge Fund Holders: 19

Healthcare Services Group, Inc. (NASDAQ:HCSG) is next on our list of companies that announced recent dividend cuts. The company announced the suspension of its dividends in February this year and also authorized up to 7.5 million shares of repurchase. It explained that this decision is about how it handles its money. It’s adjusting how it allocates capital to have more financial flexibility, invest in different opportunities, and create value more quickly.

Healthcare Services Group, Inc. (NASDAQ:HCSG)’s revenue for the second quarter of 2023 amounted to roughly $419 million, which fell by 1.4% from the same period last year. The company’s operating cash flow for the quarter came in at $7.4 million.

At the end of June 2023, 19 hedge funds tracked by Insider Monkey reported having stakes in Healthcare Services Group, Inc. (NASDAQ:HCSG), up from 17 in the previous quarter. The collective value of these stakes is over $96.7 million. With roughly 2.3 million shares, Royce & Associates was the company’s largest stakeholder in Q2.

7. V.F. Corporation (NYSE:VFC)

Number of Hedge Fund Holders: 26

V.F. Corporation (NYSE:VFC) is an American global apparel and footwear company that owns and operates a portfolio of popular clothing and lifestyle brands. The company announced a 41.2% cut in its dividend earlier this year and pays a quarterly dividend of $0.30 per share. The stock’s dividend yield on October 11 came in at 7.43%. It is among companies that have announced one of its recent dividend cuts.

In fiscal Q1 2023, V.F. Corporation (NYSE:VFC) posted revenue of $2.08 billion, down 8% from the same period last year. The company ended the quarter with over $806.5 million available in cash and cash equivalents.

At the end of Q2 2023, 26 hedge funds owned stakes in V.F. Corporation (NYSE:VFC), compared with 28 in the previous quarter, according to Insider Monkey’s database. The overall value of these stakes is over $426.2 million. Among these hedge funds, Select Equity Group was the company’s largest stakeholder.

6. Vornado Realty Trust (NYSE:VNO)

Number of Hedge Fund Holders: 27

An American real estate investment trust company, Vornado Realty Trust (NYSE:VNO) is next on our list of companies with recent dividend cuts. Earlier this year, the company slashed its dividend by 29.2% to $0.375 per share. The stock has a dividend yield of 8.43%, as of October 11.

Vornado Realty Trust (NYSE:VNO) saw growth in hedge fund positions in the second quarter of 2023, as 27 funds in Insider Monkey’s database owned stakes in the company, up from 19 in the previous quarter. The consolidated value of these stakes is over $158 million.

Click to continue reading and see 5 Biggest Dividend Cuts and Suspensions of 2023.

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