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


    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,

    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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