Discover Financial Cuts Dividend After Disappointing Earnings Results
- March 19, 2009
- Dividend Stocks
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Discover Financial (DFS: 28.89 +0.38%) announced today they are cutting their quarterly dividend by 67% to $.02 per share. The dividend cut was announced as the company reported a worse than expected operating loss for their fiscal first quarter.
The new dividend yield now stands at 1.1%.
“Out of an abundance of caution, we are also reducing our quarterly dividend to enhance our already strong capital position,” said David Nelms, chairman and chief executive officer of Discover Financial Services.
Reducing the quarterly dividend payment is expected to save the company $80 million per year.
The dividend will be payable on April 22, 2009 to shareholders of record as of April 1, 2009.
The stock was down 11.5% to $6.41 on news of the disappointing earnings and the subsequent dividend cut.
