6 big dividends: Vornado's surprise dividend suspension | Pro Recap
Investing.com | Author Davit Kirakosyan
Published May 01, 2023 05:55AM ET
Updated May 01, 2023 07:00AM ET
By Davit Kirakosyan
Investing.com -- Here is your Pro Recap of the biggest fresh dividend hikes you may have missed last week: Vornado's payout suspension, plus massive dividend hikes at Summit Hotel, Cenovus, Rand Capital, Ethan Allen, and FNCB Bancorp.
dividends - which had offered a payout ratio of 10% - until the end of 2023.
The company also said it would repurchase up to $200 million of its outstanding common shares.
Following the surprise announcement, Piper Sandler cut Vornado's rating to Underweight from Neutral and trimmed its price target to $11 from $16, noting its view that the suspension is tied to the company's declining earnings and balance sheet concerns.
Piper also said the suspension of the entire dividend suggests deeper issues within the company, adding that a partial reduction would have been "preferable." And on the buyback announcement, it noted:
If cash preservation is so critical, we wonder why implementing a $200m stock buyback program is a good use.
Shares ended last week down 1.8%, having partially recovered from their big downward spike Thursday. The company is set to report its Q1 earnings today after market close.
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