These 3 Dow Jones Stocks Could Suffer Brutal Dividend Meltdowns

  • Credit Suisse warns that three of the Dow Jones Industrial Average’s highest-yielding stocks could soon send their dividends to the cutting floor.
  • Boeing, Chevron, and Exxon could be the first high-yield stocks in the index to reduce or suspend their dividends.
  • Will they be the last?

The stock market’s “sell everything” moment dealt a crushing blow to asset valuations, causing nominal yields to spike ahead of the decade’s first earnings season. But bargain-hunters dumpster-diving for yield should beware.

Credit Suisse warns that three of the Dow Jones Industrial Average’s biggest names could dramatically reduce or even eliminate their dividends in the days ahead.

Chevron & Exxon Can’t Raid the Piggy Bank Forever

Chevron and Exxon may be forced to slash – or even eliminate – their dividends in the quarters ahead. | Source: Jonathan Weiss/

When the stock market rang in the new year at record highs, the last thing on any investor’s forecast was a global pandemic that would force a near-total shutdown of the world economy.

Nearly as unexpected was the prospect of an oil price war that would suddenly put two of the energy industry’s safest dividends – Chevron and Exxon Mobil – at risk.

Of course, January feels like a lifetime ago.

Exxon (red) and Chevron (blue) have endured steep drawdowns in 2020. | Source: Yahoo Finance

Chevron hasn’t cut its dividend since the Great Depression, and CEO Michael Wirth said last month that the company doesn’t want to break that 86-year streak.

“Our financial priorities remain intact. And the dividend is at the top of that list of priorities,” Wirth told CNN Business. “Our shareholders depend on that dividend.”

Exxon CEO Darren Woods delivered a remarkably similar statement during a CNBC interview this week.

A lot of our shareholders are retail shareholders — people who depend on that dividend — so we’ve been pretty committed to maintaining that and if necessary in the…

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