Dividend Cuts Explained?

Discussion in 'Learn how to trade or invest by asking questions' started by Gary S., Jul 31, 2017.

  1. Gary S.

    Gary S. New Member

    Hello:

    New to investing and had a dividend questions.

    When a company "cuts" its dividend who does it effect?

    1. Ie, is it a dividend cut to NEW people buying stock?
    2. Does it cut dividends of PAST stock owners? If so,

    Example:
    I buy ATT (T) at 39.00 with a dividend of 5% which would be the rate I would be somewhat locked in on. Then the company cuts the dividend? Does it effect my 5% or will the cut only effect new buyers?

    I hope this makes sense. Im having so much trouble wrapping my mind around this:)
     

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