Boeing, Lilly Buck Trend By Raising Dividend; Pfizer Affirms
Dividends have fallen during the economic slowdown as companies look for ways to conserve capital, taking away a reliable source of income in an investing environment that has shaken faith in variable annuities, money-market funds and other once-safe havens. Although financial companies have taken the hardest hit, the pain has spread across an array of sectors.
Even relatively strong companies have lowered or eliminated their dividends this year as it is easier than raising money in tight capital markets. Bank Of America Corp. (BAC), which had long said it was committed to preserving its dividend, halved its payment to 32 cents a quarter in early October.
However, Boeing's dividend, payable March 6 to shareholders of record Feb. 6, was boosted by 2.5 cents to 42 cents. Meanwhile, Eli Lilly raised its dividend by 2 cents to 49 cents, its 42nd straight annual increase. It is payable March 10 to shareholders of record Feb. 13. And Pfizer maintained its 32-cent payout.
Although the moves are unusual, these companies aren't alone. Despite its efforts to restructure its finance arm and slashing its earnings forecasts earlier this month, conglomerate General Electric Co. (GE) has repeatedly said it is committed to maintaining its dividend next year.
Shares of Boeing closed down 1.2%, while Lilly was off 3% and Pfizer fell 1.7% amid a drop in the broader market.
-By Lauren Pollock, Dow Jones Newswires; 201-938-5964; lauren.pollock@dowjones.com
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Publié le 15 Décembre 2008 Copyright © 2008 Dowjones
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