Dividend Change: Annual Dividend Suspended
In January, Finnish tech firm Nokia (NOK) announced that it would completely suspend its dividend for the first time since 1989, owing to a desire to save the 700 million euros, or roughly $1 billion, in cash for its attempted comeback.
That cutback comes alongside other measures of austerity, such as selling off assets, closing down research & development facilities, and cutting 20,000 jobs.
NOK shares are off more than 17% since that announcement, killing off an early-January rally and a whole lot more. And the company’s performance in the most recent quarter didn’t give investors much hope for a quick return to dividend payments.
Marc Bastow is an Assistant Editor at InvestorPlace.com. As of this writing, he did not hold a position in any of the aforementioned securities.