Is Novartis' Dividend at Risk?
Some investors love dividends. There are even mutual funds and ETFs that only hold shares of companies that have paid dividends the longest.
Although a history of increasing dividends is a good indication that the practice will continue, it is no guarantee. General Electric (NYSE: GE) has paid a dividend for 120 consecutive years but was forced to cut it during the Great Recession, as well as twice in 2018. Investors who had counted on the dividend couldn't get very far with the $0.01 per share after the 2018 cut.
Novartis (NYSE: NVS) investors are loving the 3.6%-yielding dividend from the well-diversified drugmaker right now, but are they at risk of having the rug pulled out from under them? With a track record of 23 consecutive years of increasing its dividend, the company can make its case as one of the more reliable high yielders around. Let's look at a few numbers that may indicate if management will have trouble keeping up that record in the future.
Source Fool.com
