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.
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.