Newell Rubbermaid Cuts Dividend By 52%

Newell Rubbermaid (NWL: 15.30 -0.07%) announced today that they are reducing their quarterly dividend by 52% to $.05 per share.

The dividend cut reduces the company’s dividend yield from 5.8% to 2.8%.

The company said in a statement, “Although the company recognizes the importance of the dividend to shareholders, it believes that the reduced payout level demonstrates a strong commitment to maintaining its current investment grade rating while still providing a competitive and appropriate dividend yield.”

The dividend cut is part of broader efforts by Newell Rubbermaid to repay their $750 million in debt that comes due in the second half of 2009. They are also offering $250 million in convertible senior notes.

NWL shares fell 8.3% to $6.65 on the news of the dividend cut. Since the beginning of the year, the shares are down 26%.