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?
In this week's episode, we discuss 5 companies in our portfolios that we don't feel comfortable owning going into a recession.
News of the week includes Novo Nordisk Market cap which now exceeds Nestle. And Unilevers Shrinkflation on Ice cream.
Companies mentioned From EMF are HPQ, Danone, BASF,
The companies mentioned by EDGI are Omega HealthCare and 3M.
Reference Material -
chowder rule Archives - European Dividend Growth Investor (europeandgi.com)