There have been several major public relations disasters over the years that have impacted dividend-paying public companies. In most cases, these companies eventually managed to recover and rebuild their brand’s reputation, while the financial repercussions have depended largely on the direct impact of product recalls or clean-up efforts.
BP plc’s (BP) Deepwater Horizon oil spill is perhaps the most recent public relations disaster aside from United Airlines. Toyota Motor Corp.’s (TM) recall of 8.8 million vehicles due to accelerator defects was another recent public relations disaster. United Airlines (UAL) has experienced a significant backlash from consumers after a pair of incidents involving passengers on its airline. Despite the public outcry, history suggests that there will be limited repercussions in terms of revenue, profitability and dividend payments. The only time companies have experienced issues with dividends have been when significant fines were imposed, but the long-term impact will be seen in upcoming quarters.
Source: Dividend.com
Related Articles:
- Don't Touch These 5 Dividend Stocks!
- 9 Higher Yielders With A Low Free Cash Flow Payout
- 6 Dividend Stocks Headed In The Right Direction
- Are The Dividends Safe For These High-Yielding Stocks?
- Who Owns The Top Dividend Stocks?
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
Many investors search for safe, dividend-paying stocks. As John D. Rockefeller once said: "Do you know the only thing that gives me ple...
-
With interest rates near zero, many investors are turning to dividend stocks for income. And for some investors, the higher the yield, the b...
-
This company yields 12.96%. Management already declared the regular and special September dividends. Its portfolio companies are holding up ...
-
There are 65 so-called “dividend aristocrats,” which is the name given to companies that have managed to increase their dividends for 25 con...
-
Before you go ahead and fill your portfolio with dividend stocks, it would be prudent to check out their market capitalizations as well. Sev...
-
Utility stocks have been relatively volatile in the recent past. However, most utility stocks have a low beta and have a stable cash flow vi...
-
Three dividend-paying pharmaceutical investments to purchase amid the COVID-19 crisis avoid focusing solely on the top contenders for develo...
-
The rollout of fifth-generation network services, also known as 5G, enhances the appeal of each of these three dividend-paying, 5G technolog...
-
The two dividend-paying technology stocks to consider boosted sales significantly, according to their latest quarterly financial reports, ev...
-
Like most other brick and mortar operators, this company's revenues were impacted by the pandemic in Q1-2 2020. Motor Fuel sales fell 35...
Often times PR nightmares can turn into great buying opportunities. Remember JNJ with those Tylenol recalls. How about death by burgers many years ago from JACK. CMG seems to be rebounding after their fiasco too. While not a rule, solid businesses/stocks often recover from bad PR given enough time.