Why B&G Foods Tumbled 19% in November
Shares of B&G Foods (NYSE: BGS) slid 18.9% in November, according to data from S&P Global Market Intelligence, after the packaged food company reported third-quarter earnings that missed Wall Street expectations, but also slashed its dividend 60% from its previous payout rate.
Although management says the new lower dividend is sustainable and is its 73rd consecutive payment since the company went public in 2004, it's never a good sign when a business cuts its dividend. The company has been hit hard by inflation and rising interest rates, which left its dividend consuming all of its excess cash and leaving little left for paying down debt or other business needs.
The quarterly dividend was cut from $0.475 per share to just $0.19 per share.
Source Fool.com
