Barber and owner of Chris Edwards wears a mask and cuts the hair of customer David Boswell at Peachtree Battle Barber Shop in Atlanta on Friday, April 24, 2020. The first phase of Georgia Gov. Brian Kemp's plan to reopen Georgia during the coronavirus pandemic included haircut shops and gyms, though not all chose to open their doors. (John Spink/Atlanta Journal-Constitution via AP)Associated Press
- As the coronavirus pandemic shuts down economies across the globe, companies are looking to strengthen their balance sheets and conserve as much cash as possible.
- One way companies are conserving cash is pausing stock buyback programs and cutting or entirely eliminating their dividends.
- Here are seven companies that either cut or suspended their dividends in the month of April.
- Visit Business Insider's homepage for more stories.
As the coronavirus continues to take its toll on the global economy, companies are in survival mode, and many are looking to cut costs, preserve liquidity, and reduce debt to make it out on the other side of the economic shock.
Dividends have been an important source of returns for investors. Since 1926, 40.2% of the S&P 500's total return can be attributed to dividends, according to The New York Times. In the S&P 500, annual dividends over the last 12 months through March totaled nearly $500 billion.
Investors have grown used to ever-increasing dividend payments and stock buyback programs over the past decade. But as companies reassess their balance sheets and try to strengthen them in response to the coronavirus pandemic, dividends and stock buybacks could be the first thing companies cut.
Here are eight companies that have either cut or suspended their dividends in the month of April due to the coronavirus pandemic.
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