Banco Bilbao Vizcaya Argentaria (BBVA)
When it comes to suspending dividends, the Europeans don’t want to be left out. In October, Spain’s biggest financial institution, Banco Bilbao Vizcaya Argentaria (BBVA), cut its annual dividend by putting a cap on payouts for 2014 (and going forward) to 40% of profits.
Tough conditions in Spain’s economy, and a pending Europe-wide asset review by the European Central Bank slated for next year, has caused BBVA to tighten its belt and keep as much cash on the balance sheet as it can. Unfortunately, that’s at the expense of shareholders in country’s premier bank.
While the company still plans to dole out dividends, it is altering 2013 payments that were slated to be paid out next year. For one, the cash payment due in January was cancelled. Also, BBVA said it would increase the dividend payout due in April to help compensate for the January suspension, but in the end, BBVA stock will end up cutting its total payouts from 2013 from 0.42 euros to 0.37 euros.