Latest news with #dividendcut
Associated Press
04-07-2025
- Business
- Associated Press
Organon & Co. (NYSE: OGN) Deadline Approaching: Berger Montague Advises Investors of Deadline in Securities Fraud Lawsuit
PHILADELPHIA, July 3, 2025 /PRNewswire/ -- Berger Montague PC advises investors that a securities class action lawsuit has been filed against Organon & Co. ('Organon' or the 'Company') (NYSE: OGN) on behalf of purchasers of Organon securities between October 31, 2024 through April 30, 2025, inclusive (the 'Class Period'). Investor Deadline: Investors who purchased or acquired Organon securities during the Class Period may, no later than JULY 22, 2025, seek to be appointed as a lead plaintiff representative of the class. To learn your rights, CLICK HERE. Organon, headquartered in Jersey City, NJ, is a healthcare company focused on women's health. In October 2024, Organon acquired Dermavant, a biopharmaceutical company focused on dermatological conditions, for $1.2 billion. According to the lawsuit, despite the increase in debt from the Dermavant acquisition, the Company assured investors that it would maintain its dividend, which it described as its "#1 capital allocation priority.' On May 1, 2025, investors learned the truth when Organon announced that management reset the Company's dividend payout from $0.28 per share to $0.02 per share. Organon's senior management explained that the Company had 'reset our capital allocation priorities to accelerate progress towards deleveraging' and that 'returning capital to shareholders is right now, less of a priority.' On this news, the price of Organon stock declined $3.48 per share – approximately 27% – from a closing price of $12.93 per share on April 30, 2025 to a close of $9.45 per share on May 1, 2025. To learn your rights or for more information, CLICK HERE or please contact Berger Montague: Andrew Abramowitz at [email protected] or (215) 875-3015, or Peter Hamner at [email protected]. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the Court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member. Berger Montague, with offices in Philadelphia, Minneapolis, Delaware, Washington, D.C., San Diego, San Francisco and Chicago, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States. Contact: Andrew Abramowitz, Senior Counsel Berger Montague (215) 875-3015 [email protected] Peter Hamner Berger Montague PC [email protected] View original content to download multimedia: SOURCE Berger Montague
Times
25-06-2025
- Business
- Times
Liontrust posts 28% drop in pre-tax profits as investors shun London
The pressure on Britain's active fund management industry has fuelled a sharp fall in profits at Liontrust, which also rattled investors by signalling that it would cut its dividend. Shares in the London-listed asset manager closed down 53½p, or 13 per cent, at 358p after it reported a 28 per cent decline in adjusted pre-tax profits to £48.3 million in the 12 months to the end of March as it was hit by clients continuing to pull their funds. Net outflows totalled £4.9 billion during the period in the third consecutive year of withdrawals by Liontrust customers, knocking the assets overseen by the group to £22.6 billion. Like other fund managers that focus on UK equities, Liontrust has suffered in recent years as investors have shied away from the London stock market in favour of more attractive opportunities elsewhere, particularly in the United States. As an active manager that picks and chooses investments, it has also faced stiff competition from cheaper passive funds that simply track indices.
Forbes
24-06-2025
- Business
- Forbes
These 3 Big Dividends Just Got Cut. They're Safer Than Ever
Hundred Dollar Bill Being Cut With a Scissor If you invest for long enough, you may hear a skeptic of high-yield investments—such as 8%+ yielding closed-end funds (CEFs)—say something like: 'Sure, you're getting a lot of income now, but what if that dividend gets cut?' Today we're going to answer that with a look at how a dividend cut can actually send a CEF (or any dividend investment, really) on a profitable run. We'll do it by looking at three CEFs that followed this exact pattern: Cutting dividends and then going on to give investors huge returns for years and years. These funds show that a dividend cut on its own isn't reason enough to avoid an investment. It could, in fact, be a buy signal. ASG Ties Payouts to Portfolio Gains—and Delivers Triple-Digit Total Returns Let's start with the Liberty All-Star Growth Fund (ASG), which yields 8.2% as I write this and trades at a 7.7% discount to net asset value (NAV, or the value of its underlying portfolio). Put another way, the fund's portfolio is valued at just over 92 cents on the dollar. That portfolio consists of a basket of large- and midcap stocks, with holdings like NVIDIA (NVDA) and Meta Platforms (META) alongside firms such as property manager FirstService (FSV) and Ollie's Bargain Outlet Holdings (OLLI), which runs a chain of discount stores. The fund uses an approach to dividends that a handful of other CEFs also follow: It commits to paying 8% of its NAV in payouts each year (in ASG's case through four quarterly installments). That means that the dividend does tend to float, and the latest one is about 17% below where it was a decade or so ago. Now in light of that policy, this dividend 'cut' is a little different than one we might see at a fund with a fixed payout, like the two we'll examine next. But regardless, ASG's lower payout might cause some investors to pass on the fund. That's too bad for them, since ASG has delivered plenty of special dividends in the last decade (the spikes in the chart above), culminating in a 162% total return (with price gains and reinvested dividends). Did ASG's payout technically decline? Yes. But that strong total return more than makes up for it, proving that the lower payout is a poor reason to avoid this well-run CEF. A 13.6%-Yielder That's Made a Smart Dividend 'Cut ' Our next fund yields well into the double digits: the 13.6%-yielding BlackRock Technology and Private Equity Term Trust (BTX). As the name says, BTX holds well-known tech stocks like NVIDIA, (AMZN) and Apple (AAPL). It also holds a collection of private-equity investments. We added BTX to my CEF Insider service in our April 2025 issue. But before then we avoided it, partly because its IPO was in 2021, when many tech firms, and many of the PE investments BTX's former management team purchased, were overvalued. BTX, which replaced its managers at the end of January, has only recently traded at what I would consider a buyable price. We've been more than happy that we were patient! In less than two months since our buy call, BTX has returned 16%, as of this writing. Even with its recent dividend cut (more on that in a moment), BTX's current yield still translates to more than $11,000 per month on every $1 million invested. But you could easily miss this if you just looked at its dividend history. BTX Dividend Of course, a 19.3% decline in the last five years jumps out, and that gentle slide lower at the right side of the chart also looks like it could be a warning sign. Let's take the second point first: That slide is due to the fact that the fund's previous management team overdid it on their last dividend hike. The new team is gradually adjusting lower. That's not a reason to worry. Meantime, a major reason why BTX's yield so high is that the fund remains underpriced, even after its recent run (as yields and share prices move in opposite directions). As you can see above, at the start of the year, it traded at a double-digit discount that has since narrowed to around 2%. That's a major reason for the 16% total return we've realized from this fund at CEF Insider. So, even if BTX's 13.6% yield is at risk of moving lower, investors who've bought the fund are still doing fine, thanks to the stock-price appreciation they've realized. (And of course, the huge income stream, which remains so even with a decline.) In other words, a continued gradual drift lower in the payout is fine, as long as BTX's portfolio keeps rising. We've seen that happen consistently over the last couple of months, and I expect it to continue as the fund's discount moves closer to becoming a premium. Growth More Than Offsets This Payout Cut Finally, let's consider another 'cutter' that's (now) delivering consistent income: the Pioneer High Income Fund (PHT), which holds high-yield corporate bonds. PHT's portfolio has been appreciating, despite volatile markets, as the Fed postponed rate cuts. The longer the central bank holds off, the more high-yield, longer-duration bonds PHT can buy (these bonds become more valuable as interest rates decline). PHT has had a 15.6% annualized return over the last three years, as of this writing, as it recovered from the 2022 selloff. And look at what the dividend did in that time: PHT Dividend That 12% payout cut happened while PHT was delivering those same strong returns. Sure, the dividend—current yield 8.2%—made up a smaller part of PHT's 15.6% annualized return due to the cuts, but capital gains more than made up the difference. In a situation like that, does the lower dividend really matter? Look at it this way: Every dollar put into PHT three years ago now earns a 9.6% yield on an investor's original cost. And on the price front, every dollar is now worth $1.17. These funds are just three examples of how dividend cuts are only one part of the story when looking at high-yield investments like CEFs—and how they can actually spark a turnaround in an investment's performance. That said, it's also true that you can't just put all of your money in one CEF and rely on that payout for the rest of your life. But it is possible to tap a strong income stream and, with just a bit of elbow grease, rebalance your portfolio every now and then to secure that income stream. And, of course, capital gains are also on the table to grow your portfolio in the long run. Michael Foster is the Lead Research Analyst for Contrarian Outlook. For more great income ideas, click here for our latest report 'Indestructible Income: 5 Bargain Funds with Steady 10% Dividends.' Disclosure: none
Associated Press
11-06-2025
- Business
- Associated Press
ORGANON & CO. (OGN) INVESTOR ALERT: Berger Montague Advises Investors to Inquire About a Securities Fraud Class Action
Philadelphia, Pennsylvania--(Newsfile Corp. - June 11, 2025) - Berger Montague PC advises investors that a securities class action lawsuit has been filed against Organon & Co. ('Organon' or the 'Company') (NYSE: OGN) on behalf of purchasers of Organon securities between October 31, 2024 through April 30, 2025, inclusive (the 'Class Period'). Investor Deadline: Investors who purchased or acquired Organon securities during the Class Period may, no later than JULY 22, 2025 , seek to be appointed as a lead plaintiff representative of the class. To learn your rights,CLICK HERE. Organon, headquartered in Jersey City, NJ, is a healthcare company focused on women's health. In October 2024, Organon acquired Dermavant, a biopharmaceutical company focused on dermatological conditions, for $1.2 billion. According to the lawsuit, despite the increase in debt from the Dermavant acquisition, the Company assured investors that it would maintain its dividend, which it described as its "#1 capital allocation priority.' On May 1, 2025, investors learned the truth when Organon announced that management reset the Company's dividend payout from $0.28 per share to $0.02 per share. Organon's senior management explained that the Company had 'reset our capital allocation priorities to accelerate progress towards deleveraging' and that 'returning capital to shareholders is right now, less of a priority.' On this news, the price of Organon stock declined $3.48 per share - approximately 27% - from a closing price of $12.93 per share on April 30, 2025 to a close of $9.45 per share on May 1, 2025. To learn your rights or for more information,CLICK HEREor please contact Berger Montague: Andrew Abramowitz at[email protected]or (215) 875-3015, or Peter Hamner at[email protected]. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the Court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member. Berger Montague, with offices in Philadelphia, Minneapolis, Delaware, Washington, D.C., San Diego, San Francisco and Chicago, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States. Contact: Andrew Abramowitz, Senior Counsel Berger Montague (215) 875-3015 [email protected] Peter Hamner Berger Montague PC [email protected] To view the source version of this press release, please visit
Yahoo
26-05-2025
- Business
- Yahoo
SATS (SGX:S58) Is Paying Out A Larger Dividend Than Last Year
SATS Ltd. (SGX:S58) will increase its dividend from last year's comparable payment on the 15th of August to SGD0.035. Despite this raise, the dividend yield of 2.3% is only a modest boost to shareholder returns. We've discovered 1 warning sign about SATS. View them for free. It would be nice for the yield to be higher, but we should also check if higher levels of dividend payment would be sustainable. However, SATS' earnings easily cover the dividend. This means that most of what the business earns is being used to help it grow. Looking forward, earnings per share is forecast to rise by 40.9% over the next year. If the dividend continues on this path, the payout ratio could be 19% by next year, which we think can be pretty sustainable going forward. See our latest analysis for SATS The company has a long dividend track record, but it doesn't look great with cuts in the past. The annual payment during the last 10 years was SGD0.13 in 2015, and the most recent fiscal year payment was SGD0.07. The dividend has shrunk at around 6.0% a year during that period. A company that decreases its dividend over time generally isn't what we are looking for. With a relatively unstable dividend, and a poor history of shrinking dividends, it's even more important to see if EPS is growing. Although it's important to note that SATS' earnings per share has basically not grown from where it was five years ago, which could erode the purchasing power of the dividend over time. Earnings growth is slow, but on the plus side, the dividend payout ratio is low and dividends could grow faster than earnings, if the company decides to increase its payout ratio. In summary, it's great to see that the company can raise the dividend and keep it in a sustainable range. The dividend has been at reasonable levels historically, but that hasn't translated into a consistent payment. The dividend looks okay, but there have been some issues in the past, so we would be a little bit cautious. Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. For instance, we've picked out 1 warning sign for SATS that investors should take into consideration. Is SATS not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
