Unexpectedly Intriguing!
December 11, 2013

The number of publicly-traded U.S. companies announcing that they would be acting to cut their dividend payments rose back into recessionary territory again in November 2013.

Number of U.S. Publicly-Traded Companies Announcing Decreasing Dividends, January 2004 through November 2013

We believe we've identified where the distress in the U.S. economy is originating. A number of Real Estate Investment Trusts (REITs), which allow stock market investors to be able to invest in the nation's real estate markets, have been acting to cut their dividends.

This follows the apparent stagnation of the U.S. new home real estate market, which has seen price increases stall out in recent months as mortgage rates spiked upward, largely upon the speculation that the Federal Reserve will act to trim the amount of U.S. Treasuries and Mortgage-Backed Securities from its current buying pace of $85 billion per month, which has driven that increase in U.S. interest and mortgage rates.

For U.S.-based REITs, the impact of those increases has meant two waves of dividend cuts so far - the first in September 2013, when at least 10 REITS acted to cut their future dividend payments, with the economic pressures to cut dividends continuing as Fed officials have tip-toed ever closer to acting on their intentions.

Such is life for the extremely interest-rate dependent.


Standard and Poor. Dividend Action Report. [Excel spreadsheet]. Accessed 10 December 2013.

Labels: , ,

About Political Calculations

Welcome to the blogosphere's toolchest! Here, unlike other blogs dedicated to analyzing current events, we create easy-to-use, simple tools to do the math related to them so you can get in on the action too! If you would like to learn more about these tools, or if you would like to contribute ideas to develop for this blog, please e-mail us at:

ironman at politicalcalculations.com

Thanks in advance!

Recent Posts

Stock Charts and News

Most Popular Posts
Quick Index

Site Data

This site is primarily powered by:

This page is powered by Blogger. Isn't yours?

CSS Validation

Valid CSS!

RSS Site Feed

AddThis Feed Button


The tools on this site are built using JavaScript. If you would like to learn more, one of the best free resources on the web is available at W3Schools.com.

Other Cool Resources

Blog Roll

Market Links

Useful Election Data
Charities We Support
Shopping Guides
Recommended Reading
Recently Shopped

Seeking Alpha Certified

Legal Disclaimer

Materials on this website are published by Political Calculations to provide visitors with free information and insights regarding the incentives created by the laws and policies described. However, this website is not designed for the purpose of providing legal, medical or financial advice to individuals. Visitors should not rely upon information on this website as a substitute for personal legal, medical or financial advice. While we make every effort to provide accurate website information, laws can change and inaccuracies happen despite our best efforts. If you have an individual problem, you should seek advice from a licensed professional in your state, i.e., by a competent authority with specialized knowledge who can apply it to the particular circumstances of your case.