
EPS 141 - Stocks we don’t feel comfortable about going into a potential recession
Dividend Talk
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The Future of Dividends
I do believe that dividend is safe at the moment. As I said, it's more depending on how long that recession would last for. If we saw a recession last for 12 months, and these continually have negative cash flows each and every quarter, how are they going to pay for that dividend? The only way they can do that is by raising new debt and in the current market, you don't really want to do that either. So let's assume that the consumer continues to be weak. Do you see yourself selling it then?
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