economy

These dividend stocks have slashed their payments, Morgan Stanley says

Shares of some companies could turn around if they clean up their act after cutting their dividend payments.

These dividend stocks have slashed their payments, Morgan Stanley says

TL;DR

  • Companies may cut dividends due to financial pressure, particularly with rising interest rates increasing the cost of capital.
  • Morgan Stanley suggests that stocks often underperform initially after a dividend cut but can recover and outperform.
  • Healthcare Realty Trust cut its dividend by 23% to manage refinancing risk and fund investments, and its shares are up 20% in 2026.
  • Dow Inc. halved its dividend to provide financial flexibility and prioritize high-return opportunities; its shares are up 42% in 2026.
  • Other companies on Morgan Stanley's list include LyondellBasell Industries, DuPont, Baxter International, and Alexandria Real Estate Equities.

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